财务分析-cashflow

• Some accounting decisions impact earnings, but not cash
– In
1988, General Motors made at least four decisions that impacted earnings but not cash
Earnings Impact $790MM $480MM $270MM $217MM $1,757MM Cash Impact None None None None None
demand CASH returns and employees require CASH compensation demand CASH payments
– debtholders
• Accounting methods can be used to “manage” earnings; CASH is
Total:
• Successful high growth companies tend to have high earnings, but low cash
flow; successful low growth companies tend to have low earnings, but high cash flow
funds its operations
• Operating profits • Decrease in
working capital
• Sale of fixed
assets
• Long-term issuance
of shares
Examples of uses:
• Operating losses • Increase in working
capital structure – cash generation ability is independent of how a firm is financed • It excludes one-time events – these are not related to a firm’s recurring operations • Operating cash flow is used to measure the strategic value of a business – for company valuations, operating and investing cash flows are used, not financing cash flow
Net cash flow is equal to the sum of the cash flows from operating, investing, and financing activities.
Operating cash flow
Investing cash flow
Financing cash flow
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BOS CU7010598KRA 10
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Cash Flow Financing Cash Flow
Financing cash flow captures all the non-operating cash changes experienced during the year, and it provides information on how a company is funding its operations.
• Investments in ongoing operations
- property, plant and equipment - are
included in investing cash flow – cash is used to replace assets as they wear out – if a business is to grow, additional assets must be acquired – in some cases, the cash used to acquire these assets is generated from the sale of existing noncurrent assets – such cash inflows, however, seldom cover the entire cost of asset acquisitions. Often times cash flow from operations is used to finance acquisitions, or, failing a positive operating cash flow, external financing is used • Pure financing activities are not included in investing cash flow. They are included in financing cash flow – purchase or sale of divisions or companies – investments in unrelated businesses • Investing cash flows relating to ongoing operations are used as a measure of the strategic value of a business. Those that are purely financing/investment mechanisms are used to evaluate the financial strategy of the business
$
$
$ $
Sources of cash
$ $
Company $ $
Uses of cash
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来自百度文库
Cash Flow Why Do We Care About Cash?
Cash flow is the measure of a company’s strategic value.
• Types of cash flow
• Applications • Cash flow steps • Exercise • Key takeaways
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Copyright© 1998 Bain & Company, Inc.
Cash Flow Types of Cash Flow
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Copyright© 1998 Bain & Company, Inc.
Cash Flow What is Cash Flow?
Cash flow describes the movement of cash into (sources) and out of (uses) a company.
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Cash Flow
Author: Collins Qian
Contributor: Chris Nelson
March 1998
Copyright© 1998 Bain & Company, Inc.
Cash Flow Agenda
• The importance of cash flow • Types of cash flow • Applications • Cash flow steps • Exercise • Key takeaways
capital
• Purchase of fixed
assets
• Repayment of loans • Payment of
dividends
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BOS CU7010598KRA 8
Copyright© 1998 Bain & Company, Inc.
Cash Flow Operating Cash Flow
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Copyright© 1998 Bain & Company, Inc.
Cash Flow Agenda
• The importance of cash flow
• Types of cash flow
• Applications • Cash flow steps • Exercise • Key takeaways
• Ability of a company’s
recurring operations to generate cash
Examples of sources:
• Ability of a company’s
investment decisions to generate cash
• How a company
Accounting Decision
• Extended useful plant life from 35
to 45 year schedule • Changed the way it accounted for its pension plan • Changed the residual value assumption for cars it leased • Adjusted its inventory valuation policy
Operating cash flow measures the ability of a business’s recurring operations to generate cash.
• Operating cash flow excludes all cash flows related to a firm’s
• The market value of a company is equal to the present value of its
expected future cash flows
• Various stakeholders demand cash
– investors – suppliers
harder to manipulate
Cash is King!
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BOS CU7010598KRA 5
Copyright© 1998 Bain & Company, Inc.
Cash Flow Earnings vs. Cash Flow*
Earnings do not equal cash flow.
BOS CU7010598KRA 9
Copyright© 1998 Bain & Company, Inc.
Cash Flow Investing Cash Flow
Investing cash flow measures the use of a business’s cash for the acquisition of non-current assets.
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*Earnings are also called after tax profits or net income
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Copyright© 1998 Bain & Company, Inc.
Cash Flow Agenda
• The importance of cash flow
• Bain is usually more interested in operating and investing* cash
flow than in financing cash flow
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*Investing activities not related to ongoing operations (such as the purchase or sale of divisions or companies, or investments in unrelated businesses) are not included in investing cash flow. They are included in financing cash flow.