Cash Flow Analysis and Statement of Cash Flow

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					Cash Flow Analysis and Statement of Cash Flow

 cash flow analysis using

  in the increasingly advocating a "cash supreme" in the modern financial environment,
cash flow analysis on the information even more important for the user. This is
because the cash flow statement clearly reflects the net cash flow of companies to
create the ability to more clearly reveal the mobility of corporate assets and financial
  1, the structure of cash flow analysis
  structural analysis of cash flow, including flow structures, outflow and inflow and
outflow of the ratio of the structure, the following to Shenzhen City Co., Ltd.
(hereinafter referred to as M Company) 1998 Annual Report (Report data omitted) as
an example to illustrate this.
  cash flow analysis of the primary task is to analyze who dominated the event, such
as the M operating cash inflow into the accounting for 40.76 percent of the investment
flows accounted for 19.9%, accounting for 39.34% funding flows, indicating
possession of business activities important position, financing cash flows of the
enterprise is an important aspect of the source.
  1. Inflow of Structural Analysis
  as operating, investing and financing activities, cash flows can bring, therefore,
should focus on the analysis of flow structure.
  inflow from operating activities in the company's main business revenue brought
into the accounts for 86.6% and accounted for 12.39% VAT thus reflect the company's
operations are normal;
  investment activities in the inflow, dividends inflow to 0, the investment recovery
and disposal of fixed assets to bring in cash flow accounts for 100% of company
investments in cash flow are all recover their investment rather than profit;
  financing in loan financing account inflows into the 52.18%, as the main source;
absorb the inflow of capital accounted for 47.74 percent interest, as a secondary
  2. Outflow structure analysis
  total outflow of the company accounted for 24.18% outflow from operating activities,
investment activities accounted for 28.64%, 47.18% total financing. Since 1998, the
company is not a cash distribution to shareholders, the company cash outflow
accounts for a large proportion of debt to a significant reduction in liabilities.
  outflow from operating activities, purchases of goods and services accounted for
54.38%; paid to employees as well as workers accounted for 10.81% of cash
payments, taxes accounted for 3.6% pay less, pay and other cash operating activities
to 29.80 percent, a larger proportion. Equity outflow from investing activities Cash
paid for investments accounted for 60.74%, while the acquisition of fixed assets,
intangible assets, and other long-term assets accounted for 39.26% of cash payments.
Repayment of the principal financing outflow rate of 47.51%, other fees and interest
payments for the financing. As can be seen from the above analysis, the company's
large cash outflow from investing activities, cash outflow in investing activities, the
equity investment has accounted for the largest proportion, indicating rapid expansion
of the company's equity.
  3. Inflow and outflow of the ratio of
  company's cash flow from M can be seen:
  operating activities: Cash inflows 42.6989 million yuan
% 32.349 million yuan in cash outflows D% A company cash inflows and outflows
from operating activities ratio was 1.32, indicating that one yuan of cash outflow to
1.32 yuan in exchange for cash inflow. This value is of course the bigger the better.
  investment activities: Cash inflows 20.85 million yuan
  cash outflow 38.3319 million yuan
  investment activities of the company's cash inflows and outflows ratio of 0.74, the
Company's cash outflow from investing activities cause large that the company is in a
period of expansion. In general, companies in the development of this value during
the relatively small, while the decline or lack of investment opportunities, this value
  fund-raising activities: Cash inflows 41.205 million yuan
  cash outflow 63.1449 million yuan
  ratio of inflow and outflow of fund-raising activities of 0.65, indicating significantly
greater than the loan repayment. If the cash inflow from financing activities in the
Department of borrowing available, but also shows the existence of a large extent the
company refinance old debt by new phenomenon.
  for information users, in the understanding of the business cash flow, the inflow and
outflow structures should also be for historical comparison or peer Bijiao, this can
receive more meaningful conclusions.
  generally healthy for a growing company, operating cash flow should be positive,
cash flow from investing activities should be negative, and financing cash flow should
be positive and negative phase, and the company The cash flow shows that the basic
growth situation of the company,
  2, solvency analysis
  While current ratio, quick ratio also reflects the liquidity of the assets or solvency,
but reflect some limitations, this is because the real can be used to repay debt in cash,
cash flow and debt compared to better reflect the ability to repay debt.
  1. Cash due debt ratio
  Cash ratio = cash balance due debts due this issue debt ÷
  where the debt is due for the current period current period is about to expire
long-term debt and notes payable. If the maturity of the debt ratio with the industry to
inspect the cash, you can determine the size of the target company's current solvency.
  2. Cash flow debt ratio
  cash flow ratio = cash balance liabilities ÷ Total current liabilities
  description of this target is low on cash to repay short-term liabilities stressful.
  3. Cash total debt ratio
  cash debt ratio = total debt ÷ total cash balance
  higher percentage of this indicator, the capacity of enterprises, the stronger the
assumption of debt.
 4. To obtain cash capacity than
 is the ability to obtain cash net operating cash flow and the ratio of investment
resources, the resources can be sales, the total assets and net working capital, net
assets or equity shares outstanding etc.
 5. sales ratio
 cash sale of the cash ratio = net cash inflow from operating activities ÷ sales,
 for example, M's sales of 4,000 million net cash inflow from operating activities was
10 million element, then:
 sale of the cash ratio = 1000 ÷ 4000 = 0.25. Description of each sales dollar, get cash
0.25 yuan.
 6. Operating cash flow per share = Net cash inflow from operating activities ÷
ordinary share capital
 M common stock if the share capital of 6,000 million, net operating cash inflow of
10 million yuan, the share of business Cash flow = 1000 ÷ 6000 = 0.17 yuan / share
 This ratio larger the enterprise capital spending and the stronger the ability to pay
 7. All assets of the cash recovery rate
 cash rate all of the assets, business activities and investment activities are cash
inflows and total assets ratio, indicating the capacity of corporate cash assets.
 great edited test / center>