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

Bond indexation, Bond indexation serves the purpose of replicating th...

Bond indexation serves the purpose of replicating the performance of a predetermined benchmark as closely as possible. These benchmarks are generally very broader

State the objectives of corporate financial, State the objectives of Corpor...

State the objectives of Corporate financial Corporate financial objectives could be to: 1. Provide the link between business and the other entities in environmentand 2.

Discount and premium, What is the  Discount and Premium? Describe please.

What is the  Discount and Premium? Describe please.

Create a financial institution’s balance sheet, Question. 1 Using D to...

Question. 1 Using D to assess the interest rate risk of a financial institution's balance sheet Background: Point 1. A business is 'insolvent' when it has negative eq

What is capital rationing, What is capital rationing? Should a firm practic...

What is capital rationing? Should a firm practice capital rationing? Why? Capital rationing is the practice of putting dollar limits on what will be invested in new capital bud

Conversion value, Conversion value is the amount which investors wi...

Conversion value is the amount which investors will receive by immediately exchanging the bonds for equity stock and selling the stock at prevailing market

Commodities exchange, Explain the organization and function of commodities...

Explain the organization and function of commodities exchange

Financial ratio analysis, 1. Calculate the compound average annual growth r...

1. Calculate the compound average annual growth rate in sales and profit after tax

Segment margin, Segment Margin This is the amount in which a business s...

Segment Margin This is the amount in which a business segment in a company contributes toward the common or indirect cost of the company. Therefore, it represents that segment'

Explain hedging transaction exposure, Discuss and compare hedging transacti...

Discuss and compare hedging transaction exposure by using the forward contract vs. money market instruments. While do the alternative hedging approaches generate similar result?

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