财务分析-cashflow

Author:CollinsQian,Contributor:ChrisNelson,bc,CashFlow,March1998,Copyright1998BainCASHishardertomanipulate,CashisKing!,Cashflowisthemeasureofacompanysstrategicvalue.,6,CU7010598KRA,CashFlow,Earningsvs.CashFlow*,Someaccountingdecisionsimpactearnings,butnotcashIn1988,GeneralMotorsmadeatleastfourdecisionsthatimpactedearningsbutnotcash,Earningsdonotequalcashflow.,*Earningsarealsocalledaftertaxprofitsornetincome,Successfulhighgrowthcompaniestendtohavehighearnings,butlowcashflow;successfullowgrowthcompaniestendtohavelowearnings,buthighcashflow,EarningsImpact,$790MM,$480MM,$217MM,$270MM,CashImpact,None,None,None,None,Total:,$1,757MM,None,7,CU7010598KRA,CashFlow,Agenda,TheimportanceofcashflowTypesofcashflowApplicationsCashflowstepsExerciseKeytakeaways,8,CU7010598KRA,CashFlow,TypesofCashFlow,Netcashflowisequaltothesumofthecashflowsfromoperating,investing,andfinancingactivities.,Operatingcashflow,Investingcashflow,Financingcashflow,Abilityofacompanysrecurringoperationstogeneratecash,Abilityofacompanysinvestmentdecisionstogeneratecash,Howacompanyfundsitsoperations,OperatingprofitsDecreaseinworkingcapital,Saleoffixedassets,Long-termissuanceofshares,Examplesofsources:,OperatinglossesIncreaseinworkingcapital,Purchaseoffixedassets,RepaymentofloansPaymentofdividends,Examplesofuses:,9,CU7010598KRA,CashFlow,OperatingCashFlow,*Investingactivitiesnotrelatedtoongoingoperations(suchasthepurchaseorsaleofdivisionsorcompanies,orinvestmentsinunrelatedbusinesses)arenotincludedininvestingcashflow.Theyareincludedinfinancingcashflow.,OperatingcashflowexcludesallcashflowsrelatedtoafirmscapitalstructurecashgenerationabilityisindependentofhowafirmisfinancedItexcludesone-timeeventsthesearenotrelatedtoafirmsrecurringoperationsOperatingcashflowisusedtomeasurethestrategicvalueofabusinessforcompanyvaluations,operatingandinvestingcashflowsareused,notfinancingcashflow,Bainisusuallymoreinterestedinoperatingandinvesting*cashflowthaninfinancingcashflow,Operatingcashflowmeasurestheabilityofabusinesssrecurringoperationstogeneratecash.,10,CU7010598KRA,CashFlow,InvestingCashFlow,Investmentsinongoingoperations-property,plantandequipment-areincludedininvestingcashflowcashisusedtoreplaceassetsastheywearoutifabusinessistogrow,additionalassetsmustbeacquiredinsomecases,thecashusedtoacquiretheseassetsisgeneratedfromthesaleofexistingnoncurrentassetssuchcashinflows,however,seldomcovertheentirecostofassetacquisitions.Oftentimescashflowfromoperationsisusedtofinanceacquisitions,or,failingapositiveoperatingcashflow,externalfinancingisusedPurefinancingactivitiesarenotincludedininvestingcashflow.TheyareincludedinfinancingcashflowpurchaseorsaleofdivisionsorcompaniesinvestmentsinunrelatedbusinessesInvestingcashflowsrelatingtoongoingoperationsareusedasameasureofthestrategicvalueofabusiness.Thosethatarepurelyfinancing/investmentmechanismsareusedtoevaluatethefinancialstrategyofthebusiness,Investingcashflowmeasurestheuseofabusinessscashfortheacquisitionofnon-currentassets.,11,CU7010598KRA,CashFlow,FinancingCashFlow,Majortypesoffinancingcashflowinclude:debt-relatedtransactionschangesinlong-termdebtinterestincomeandexpenseequity-relatedtransactionschangesincommonandpreferredstockdividendsshort-terminvestmentslong-termassetandliabilitytransactionspurchaseorsaleofadivisionorcompanychangesinlong-termliabilities,Financingcashflowcapturesallthenon-operatingcashchangesexperiencedduringtheyear,anditprovidesinformationonhowacompanyisfundingitsoperations.,12,CU7010598KRA,CashFlow,StatementofCashFlows,TheSCFisdividedintothreesections:operating,investing,andfinancingEachsectionshowssourcesandusesoffundsfortheaccountingperiodTheSCFshowstheamountsfordepreciationandamortizationcapitalexpenditurestaxespaiddividendspaidItdoesnotshowsourcesandusesbybusinessunitItdoesnotprovidemuchdetailforexample,itdoesnotshowcapitalexpendituresbyproject,norindividualequipmentpurchases,TheSCFisnotasubstituteforcashflowanalysis,Thestatementofcashflows(SCF)foundinannualreportsisagoodsourceofdataforconstructingcashflows,butsometimesitdoesnothavethedetailrequiredfortheanalysisbeingdone.,13,CU7010598KRA,CashFlow,Agenda,TheimportanceofcashflowTypesofcashflowApplicationsCashflowstepsExerciseKeytakeaways,14,CU7010598KRA,CashFlow,Applications,Baincaseteamsusecashflow(CF)analysistovalueinvestments/acquisitions,toimprovethehealthofbusinessunits,andtohelpcompaniesmanagetheirportfolios.,Valuation(mergers,acquisitions),Businessunitanalysis,Portfoliomanagement,Whatisthecashgenerationpotentialofaninvestment/acquisition?Whatarewewillingtopay(incash)forthatinvestment/acquisition?,Howhealthyisabusinessunit?Whatfactorshaveeffectedthebusinessunitsabilitytogeneratecash/valueovertime?Howcanthebusinessunitscashmanagementbeimproved?,Whatistheoverallbalanceofcashusers/cashgeneratorsinaclientsportfolioofbusinesses?Howdoesthiseffecttheclientsoverallcashposition/outlook?Whatrestructuringcanbedonetoimprovethisprofile?,CF=commondenominator,CF=measuringstick,CF=portfoliotool,15,CU7010598KRA,CashFlow,Agenda,TheimportanceofcashflowTypesofcashflowApplicationsCashflowstepsExerciseKeytakeaways,16,CU7010598KRA,CashFlow,CashFlowCookbook,*Cashisdefinedascashplusmarketablesecuritiesminusshort-termnotes*I/S=incomestatement,SCF=statementofcashflows,B/S=balancesheet,+/-+/-+/-=,1.Profitbeforeinterestandtax(PBIT)2.Depreciation3.Othernon-cashexpenses/income4.Decrease/increaseinworkingcapital(excludingcash)5.Taxespaid6.Taximpactofinterestincome/expenseOperatingcashflow,Baincaseteamsusethefollowingcashflowcookbook:,-=,7.CapitalexpendituresInvestingcashflow,+/-+/-+/-+/-+/-=,8.Interestincome/expense9.Taximpactofinterestexpense/income10.Increase/decreaseinlong-termdebt11.Increaseinoutstandingstocks/shares12.Dividends13.ChangesinotheraccountsFinancingcashflow,14.Reconcilewithchangeincash*fromBalanceSheet,Netcashflow,Source*,I/S,SCF,B/SandNotes,Notes,B/S,I/S,B/S,I/S,SCF,B/SandNotes,I/S,I/S,B/S,B/S,SCF,B/S,andNotes,B/S,I/S,B/S,17,CU7010598KRA,CashFlow,Agenda,TheimportanceofcashflowTypesofcashflowApplicationsCashflowstepsExerciseKeytakeaways,18,CU7010598KRA,CashFlow,Exercise-Background(p.1),*ThisexerciseisbasedonTheGilletteCompanysfinancialstatementsin1996.Sinceseveralmodificationshavebeenmadetothefinancialstatements,theinformationprovidedhereaftershouldnotbeusedtoanalyzeGillettesfinancialperformance.,NetSales,CostofSales,GrossProfit,SGaddchangesintheirbalancetofinancingcashflowignorechangesinPPE;theircashimpacthasbeenaddressedthroughthe“capitalexpenditure”and“depreciation”itemsinoperatingcashflowignorechangesindeferredtaxes;theircashimpacthasbeenaddressedbythe“taxespaid”iteminoperatingcashflow,58,CU7010598KRA,CashFlow,Step13-ChangesinOtherAccounts-Answer,Otherlong-termliabilities:,1995($MM),$635.1,1996($MM),$630.2,Change,Decrease,ImpactonCashFlow,Decrease,Result($MM),($4.9),Adecreaseinotherlong-termliabilitiesdecreasesfinancingcashflow.,59,CU7010598KRA,CashFlow,FinancingCashFlowCalculation,-+-,InterestexpenseTaximpactofinterestexpenseIncreaseinlong-termdebtIncreaseinoutstandingstocksandsharesDividendsDecreaseinotherlong-termliabilitiesFinancingcashflow,$42.1MM,$430.0MM,$126.1MM,($450.8)MM,$31.2,($111.3)MM,($4.9)MM,Financingisasourceof$31.2MMincashforTheNewEnglandRazorCompany.,60,CU7010598KRA,CashFlow,CashFlowSummary,1.ProfitBeforeInterestandTaxes(PBIT),2.+Depreciation,3.+Othernon-cashexpenses,4.-Increaseinworkingcapital,5.-Taxespaid,6.-Taximpactofinterestexpense,7.-Capitalexpenditures,8.-Interestexpense,9.+Taximpactofinterestexpense,10.+Increaseinlong-termdebt,11.+Increaseinoutstandingstocksandshares,12.-Dividends,13.-Decreaseinotherlong-termliabilities,14.Changeincash,$1,636.3MM,$381.1MM,$22.0MM,($175.2)MM,($714.1)MM,($42.1)MM,($1,138.5)MM,($111.3)MM,$42.1MM,$430.0MM,$126.1MM,($450.8)MM,($4.9)MM,$31.2MM,$1,108.0MM,$0.7MM,Operatingcashflow,Financingcashflow,TheNewEnglandRazorCompanyhasanetchangeincashof$0.7MM.,($1,138.5)MM,Investingcashflow,61,CU7010598KRA,CashFlow,Step14-CashReconciliation,BalanceSheet,Wheretofind:,Process:,Thecashflowshouldreconcilewiththechangeincashandcashequivalentsonthebalancesheet.,Changeincash+Changeinmarketablesecurities=Changeincash,Comment:,Cashequivalentsarecombinedwithcashtogiveanaccuratepictureofcashposition,62,CU7010598KRA,CashFlow,Step14-CashReconciliation-Answer,Cash:,MarketableSecurities:,1996($MM),1995($MM),Change($MM),$76.9,$7.0,$81.6,$1.6,($4.7),$5.4,Changeincashposition,$0.7MM,TheBalanceSheetfortheNewEnglandRazorCompanyshowsanetchangeincashof$0.7MM.,63,CU7010598KRA,CashFlow,Agenda,TheimportanceofcashflowTypesofcashflowApplicationsCashflowstepsExerciseKeytakeaways,64,CU7010598KRA,CashFlow,KeyTakeaways,“CashisKing”cashflowisaveryusefulmeasureofacompanysperformanceearningscanbeverydifferentfromcashflow,Operatingcashflow+investingcashflow+financingcashflow=netcashflow,Themajorcomponentsofoperatingcashfloware:profitbeforeincomeandtaxnon-cashexpenses/income(mainlydepreciation)changeinnon-cashworkingcapital,Themajorcomponentofinvestingcashflowis:capitalexpenditures,Themajorcomponentsoffinancingcashfloware:debt-relatedtransactionsequity-relatedtransactionslong-termassetandliabilitytransactions,Financialstatementsoftenhavesomeunusualfeatures,but95%ofthecashflowcanusuallybeunderstoodbylookingattheitemslistedabove,Thevalueofcashflowanalysisisinunderstandingthecomponentsordriversofcashflow,65,CU7010598KRA,TakeawaySlides(p.1),CashFlow,CashisKing,CashFlowCookbook,+/-+/-+/-,1.Profitbeforeinterestandtax(PBIT)2.Depreciation3.Othernon-cashexpenses/income4.Decrease/increaseinworkingcapital(excludingcash)5.Taxespaid6.Taximpactofinterestincome/expense,-=,7.CapitalexpendituresInvestingcashflow,+/-+/-+/-+/-+/-,8.Interestincome/expense9.Taximpactofinterestexpense/income10.Increase/decreaseinlong-termdebt11.Increaseinoutstandingstocks/shares12.Dividends13.Changesinotheraccounts,Netcashflow,Source,I/S,SCF,B/SandNotes,Notes,B/S,I/S,B/S,I/S,I/S,I/S,B/S,B/S,B/S,I/S,B/S,14.ReconcilewithchangeincashfromBalanceSheet6,BalanceSheet,Wheretofind:,Process:,Changeincash+Changeinmarketablesecurities=Changeincash,Comment:,Cashequivalentsarecombinedwithcashtogiveanaccuratepictureofcashposition,CashPosition,Applications,SCF,B/SandNotes,SCF,B/SandNotes,Operatingcashflow,Financingcashflow,=,=,66,CU7010598KRA,TakeawaySlides(p.2),CashFlow,TypesofCashFlow,OperatingCashFlow,InvestingCashFlow,FinancingCashFlow,Operatingcashflow,Investingcashflow,Financingcashflow,Abilityofacompanysrecurringoperationstogeneratecash,Abilityofacompanysinvestmentdecisionstogeneratecash,Howacompanyfundsitsoperations,OperatingprofitsDecreaseinworkingcapital,Saleoffixedassets,Long-termissuanceofshares,Examplesofsources:,OperatinglossesIncreaseinworkingcapital,Purchaseoffixedassets,RepaymentofloansPaymentofdividends,Examplesofuses:,Investmentsinongoingoperations-property,plantandequipment-areincludedininvestingcashflowcashisusedtoreplaceassetsastheywearoutifabusinessistogrow,additionalassetsmustbeacquiredinsomecases,thecashusedtoacquiretheseassetsisgeneratedfromthesaleofexistingnoncurrentassetssuchcashinflows,however,seldomcov