Cash Flow 现金流

1、Cash Flow李少琴 39号1. Definition of cash flow2. Cash flow analysis3. Business financials What is Cash Flow? 1. Definition of cash flow2. Cash flow analysis2.1 Cash flows are often transformed into measures that give information e.g. on a companys value and situation: to determine a projects rate of ret

2、urn or value. to determine problems with a businesss liquidity. as an alternative measure of a businesss profits . cash flow can be used to evaluate the quality of income generated by accrual accounting. to evaluate the risks within a financial product.2.2 Symptoms of cash flow problems. Up to overd

3、raft limit no headroom / returned payments Stretch to pay salaries each month Trade creditor arrears Taxation arrears Rent arrears No working capital buffer surviving day to day Negative working capital on balance sheet over geared / losses? Lack of funds for remedial action (redundancies / premises

4、 relocation) Lack of profitability insufficient to support owner / managers lifestyle Unable to pay for professional advice3. Business financials Operational cash flows: Cash received or expended as a result of the companys internal business activities. changing in net working capital. It is the cos

5、t or revenue related to the companys short-term asset like inventory. capital spending. This is the cost or gain related to the companys fix asset such as the cash used to buy a new equipment or the cash which is gained from selling an old equipment.The cash flow for a company also include three par

6、ts: operating cash flow investment cash flow financing cash flowDescriptionDescriptionAmount ($)Amount ($)totals ($)totals ($)Cash flow from operationsCash flow from operations +70+70 Sales (paid in cash)+30 Incoming loan+50 Loan repayment-5 Taxes-5 Cash flow from investmentsCash flow from investmen

7、ts -10-10 Purchased capital-10 TotalTotal 6060ExampleThe net cash flow only provides a limited amount of information. Compare, for instance, the cash flows over three years of two companies: Company ACompany ACompany BCompany B Year 1Year 2Year 3Year 1Year 2Year 3Cash flow from operations+20M+21M+22M+10M+11M+12MCash flow from financing+5M+5