Financial analysis of listed companies and its application: Rapid Interpretation of cash
flow analysis of scale
of the cash flow statement cash
in the cash flow statement, the company's net cash flow from operating cash net flow,
net cash flow investing and financing cash flows taken together form a net. Because
cash is the enterprise survival foundation for development projects through the cash
flow statement the cash position of the composition analysis, we can get a lot about
the business situation of valuable information, this analysis of the in-depth
understanding of the business is performing very important .
company's cash flow, we have divided into the following types:
1, the net operating cash flow for the "+" net cash flow investment "+" net cash flow
financing as "+." This company's main business self-sufficient in terms of cash flow,
investment returns in good condition, then continue to raise funds, if no new
investment opportunities, will result in waste of money.
2, net operating cash flow for the "+" net cash flow investment "+", financing net
cash flow "-." This virtuous circle of company operations and investments, financing
activities was negative due to debt repayments caused by less than had been
threatening the financial position.
3, net operating cash flow for the "+" net cash flow investments "-", financing net
cash flow for the "+." This company is good, by raising funds for investment, business
expansion are often in a period of time we should focus on the profitability of
4, the net operating cash flow for the "+" net cash flow investments "-" net cash flow
financing "-." Although such companies is operating well, but the company before the
one hand, to repay the debt, on the other hand to continue to invest, it should be
concerned about any changes in operating conditions to prevent deterioration of the
5, the net operating cash flow "-" net investment cash flow for the "+", financing net
cash flow for the "+." Such companies rely on to maintain production and
management's need to borrow money, the financial situation could deteriorate, should
focus on the analysis of investment activities, net cash inflows from investments
Shouyi or Shouhui investment, if the latter, Qi Ye's would be critical.
6, the net operating cash flow "-" net investment cash flow for the "+" net cash flow
financing "-." Danger signal operations have been issued, if the cash inflows mainly
from the recovery of investment, the company will be at the edge of bankruptcy,
require a high degree of vigilance.
7, net operating cash flow "-" net cash flow investments "-", financing net cash flow
for the "+." Enterprises rely on borrowing to maintain daily operations and the
expansion of production scale, financial situation is unstable, if it is at the input of the
enterprise, once the tide over their difficulties, there may be development, if the
growth stage or stability of the business, a very dangerous one.
8, net operating cash flow "-" net cash flow investments "-" net cash flow financing
"-." Critical financial situation of enterprises, must be promptly reversed, and this
often occurs during the expansion, due to changes in the market led to deterioration of
operating conditions, when coupled with expansion into a lot of money, companies
will face a dilemma. (North Bank Systems Research Institute of assets Wang Sing Wo
silver companies using Wo analysis system, using an example of the above methods.
To hop (600 090) on Dec. 31, 2002 data, for example, net cash flow for the company
64.74 million yuan, but its net operating cash flow -3,446 million, net cash flow to
invest 27.78 million yuan, net cash flow financing 71.42 million yuan (their traffic
mainly from borrowings). The company operated on borrowed money to maintain
production needs, financial situation is deteriorating, and its net cash inflow from
investing activities is mainly from the return on investment. Table from the cash
situation, the situation of enterprises will be more severe, causing investors to be