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Functional Analysis of Cash Flow Statement Cash Flow

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					Functional Analysis of the cash flow statement of cash flow

  cash flow analysis
  functional analysis of financial statements is based primarily on the financial
statements, using scientific evaluation criteria and applicable methods of analysis,
following standard analysis program, the process of financial activities revealed
contradictions and problems existing, thus the operation of enterprises and their
performance to Panduan 评价 and forecasting, Guan Lizhe Juecetigong Fang Xiang
and clues, Xian cash flow analysis on Qiangdiao White, described what How to see
the business from the cash flow statement of crisis, the financial position, cash flow
statement in order to play early-warning performance.
  1, the role of corporate cash flow analysis
  a normal business enterprise, to create profits, but also to create cash income, by
source of cash flow analysis, can be evaluated on ability to create cash can get cash on
the ability of businesses to predict the future. Cash flow statement of cash flow
information revealed from the perspective of corporate cash solvency and ability to
pay to make more reliable and robust evaluation. Enterprise's net profit on an accrual
basis calculated, and the cash flow statement of cash flow statement is based on cash
basis. Cash flow and net profit by comparative analysis of earnings quality can be
evaluated. Investment activities and financial resources in the enterprise portion of an
object, in order to reap more benefits an act, fund-raising activities are under the
financial needs of enterprises, direct or indirect financing of an act, corporate
investment and financing activities and enterprises closely related business activities,
therefore, revealed in the cash flow of investment and financing activities generated
cash inflows and outflows of information, can be combined operations generated net
cash flow of information and business specific analysis, which the enterprise
investment activities and financing activities for the fiasco.
  second source of corporate cash,
  corporate source of cash there are three main areas: cash flow from operating
activities, investing activities and financing activities, flows into the. Normal in the
production and management of an enterprise, investment and finance under the same
scale, the greater the cash flow business activity is more intense; if the total cash
inflow from operating activities Cash flows larger proportion, it can reflect the good
business conditions , received strong and bad debt risk is small, the cash inflow
structure is more rational; If the cash inflows generated mainly by the return on
investment, even by the disposal of fixed assets, intangible assets and other assets
caused, it may reflect the production viability of a recession, the maintenance and
development problems; if financing a large proportion of cash flows, may mean
enterprises have a broad fund-raising channels and has sufficient funds expand
production scale potential.
  3, the use of corporate cash direction
  company is now deciding how to use the cash future cash sources. Cash outflow into
cash outflow from operating activities, cash outflow from investing activities, cash
outflow from financing activities. In general, the total cash outflow from operating
activities of enterprises out of proportion, its normal production and management,
cash expenditure structure is more reasonable. Normal economic activities in the
enterprise, its cash outflow from operating activities they should have some stability,
if large changes occur, you need to look for further reasons: cash flow from operating
activities will account for most of the purchase of commodities and to accept service
pay is the cost of principal operations and income statement compared the financial
situation of enterprises can be found in some problems.
  cash flow from investing activities are the main features of less massive one-time
cash inflows, while the possibility of massive one-time cash flow, generally acquire
fixed assets, intangible assets or long-term assets caused may is due to foreign
investment. Then the cash flow means that companies may have greater future cash
flow, depending on the policies of business or not be correct.
  cash outflow from financing activities primarily due to repayment of debt and
payment of cash dividend. Repayment of debt means that financial risk will become a
small business, but a relatively short period of time, the total cash outflow from
financing activities Cash outflow from the proportion of the cash flow may also cause
difficulties; dividend payment to consider ability to pay business, it may enhance
investor confidence and attract potential investors, and enhance fund-raising ability,
but must ensure that the dividends paid and net operating cash flow between the retain
sufficient cash to sustain future of normal operations in order to achieve future cash
flows.
  in a market economy, each an independent business enterprise continues as long as
their economic activities, then it must be considered to maintain financial balance.
Recognized under the accrual basis of accounting profit is the result of matching
revenue and costs, including many claims such as accounts receivable assets, if the
asset quality is not high, even if the profits for the high, will not improve the financial
situation of enterprises; If one of the existence of related party transactions
manipulation means, the resulting net profit is a great trap. These circumstances alone
net profit is difficult to discern at this time combined with operating cash flow of
information can be more objective and comprehensive understanding of corporate
profits in the "cash" component, in order to judge the quality of corporate real
benefits.
  in enterprises throughout the duration of the accounting profit and cash flow amount
is exactly the same, but in the short run there are some differences, by eliminating the
investment income and financing costs of the accounting profit and cash from
operating activities flow of contrast, can reveal the quality is good or bad accounting
profit: net cash generated from operating activities is greater than or equal to the flow
of profits, business activities shows the cash recovery rate was high, earnings quality
is better; but in an increasingly competitive market Today, credit is to maintain a
commercial enterprise survival and development; operating cash flow less than the
profit, then the judge corporate profitability, solvency must be careful, should be
combined with other factors, in-depth analysis. / Center>

				
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