Enumerate the cash flow statement analysis, Financial Management

Assignment Help:

Cash flow statement analysis

Cash flow statement is a primary financial statement and shows cash generating ability of the organisation.

Cash generated from operations can be compared against the operating profit. If there are high profits and low cash being generated this may propose over trading.

Cash generated from operating activities can be compared to long term borrowings to see how well business is generating cash to meet itsobligations.It can be compared against capital expenditure  to  see  how  much  of  the  investment  on  new  noncurrent  assets  was  financed  by  operating activities.

Return on capital employed for cash can be established as follows:

Cash generated from operating activities / capital employed x 100%

 


Related Discussions:- Enumerate the cash flow statement analysis

Mutual fund services, Mutual Fund Services: Financial Mutual Funds laun...

Mutual Fund Services: Financial Mutual Funds launch schemes to cater to the need of the different categories of investors. They provide special services in addition to the retu

Calculate the projects payback period, Project Z has a cost of $ 50,000.00,...

Project Z has a cost of $ 50,000.00, its expected net cash flows are $11,000 per year for 8 years, and its cost of capital is 12 % (Hint: begin by constructing a time line). Ins

Life insurance - property and causality insurance, What are the differences...

What are the differences between life insurance and property and causality insurance? Life insurance prevents against death, retirement and illness. Companies obtain premiums b

Pension reforms, Pension Reforms On January 1, 2004, Pension Funds have...

Pension Reforms On January 1, 2004, Pension Funds have come into force in India. Government servants will have to subscribe to them. The new pension fund system is primarily dr

APC 308, the importance of a balanced capital structure and the problems wh...

the importance of a balanced capital structure and the problems which are associated with high levels of gearing

Financial reform, The recent financial reform in the Public Sector that had...

The recent financial reform in the Public Sector that had been implemented in Fiji is essential. Critically evaluate this statement.

Break even sales, given just the sales and profit values, how is the break-...

given just the sales and profit values, how is the break-even sales calculated?

Calculate the confidence interval of returns, Following are return expectat...

Following are return expectations on the S&P 500 index for the upcoming year with the corresponding probabilities: Expectation                                   Return

Exchange rate changes decrease risk of foreign investment, Would exchange r...

Would exchange rate changes all time increase the risk of foreign investment? Discuss the condition within which exchange rate changes may actually decrease the risk of foreign inv

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd