贝恩咨询财务分析工具课件（67页）

Author CollinsQian Contributor ChrisNelson bc CashFlow March1998 Copyright 1998Bain Company Inc 2 CU7010598KRA CashFlow Agenda TheimportanceofcashflowTypesofcashflowApplicationsCashflowstepsExerciseKeytakeaways 3 CU7010598KRA CashFlow Agenda TheimportanceofcashflowTypesofcashflowApplicationsCashflowstepsExerciseKeytakeaways 4 CU7010598KRA CashFlow WhatisCashFlow Cashflowdescribesthemovementofcashinto sources andoutof uses acompany Sourcesofcash Company Usesofcash 5 CU7010598KRA CashFlow WhyDoWeCareAboutCash ThemarketvalueofacompanyisequaltothepresentvalueofitsexpectedfuturecashflowsVariousstakeholdersdemandcashinvestorsdemandCASHreturnssuppliersandemployeesrequireCASHcompensationdebtholdersdemandCASHpaymentsAccountingmethodscanbeusedto manage earnings CASHishardertomanipulate CashisKing Cashflowisthemeasureofacompany sstrategicvalue 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 Abilityofacompany srecurringoperationstogeneratecash Abilityofacompany sinvestmentdecisionstogeneratecash Howacompanyfundsitsoperations OperatingprofitsDecreaseinworkingcapital Saleoffixedassets Long termissuanceofshares Examplesofsources OperatinglossesIncreaseinworkingcapital Purchaseoffixedassets RepaymentofloansPaymentofdividends Examplesofuses 9 CU7010598KRA CashFlow OperatingCashFlow Investingactivitiesnotrelatedtoongoingoperations suchasthepurchaseorsaleofdivisionsorcompanies orinvestmentsinunrelatedbusinesses arenotincludedininvestingcashflow Theyareincludedinfinancingcashflow Operatingcashflowexcludesallcashflowsrelatedtoafirm scapitalstructurecashgenerationabilityisindependentofhowafirmisfinancedItexcludesone timeeventsthesearenotrelatedtoafirm srecurringoperationsOperatingcashflowisusedtomeasurethestrategicvalueofabusinessforcompanyvaluations operatingandinvestingcashflowsareused notfinancingcashflow Bainisusuallymoreinterestedinoperatingandinvesting cashflowthaninfinancingcashflow Operatingcashflowmeasurestheabilityofabusiness srecurringoperationstogeneratecash 10 CU7010598KRA CashFlow InvestingCashFlow Investmentsinongoingoperations property plantandequipment areincludedininvestingcashflowcashisusedtoreplaceassetsastheywearoutifabusinessistogrow additionalassetsmustbeacquiredinsomecases thecashusedtoacquiretheseassetsisgeneratedfromthesaleofexistingnoncurrentassetssuchcashinflows however seldomcovertheentirecostofassetacquisitions Oftentimescashflowfromoperationsisusedtofinanceacquisitions or failingapositiveoperatingcashflow externalfinancingisusedPurefinancingactivitiesarenotincludedininvestingcashflow TheyareincludedinfinancingcashflowpurchaseorsaleofdivisionsorcompaniesinvestmentsinunrelatedbusinessesInvestingcashflowsrelatingtoongoingoperationsareusedasameasureofthestrategicvalueofabusiness Thosethatarepurelyfinancing investmentmechanismsareusedtoevaluatethefinancialstrategyofthebusiness Investingcashflowmeasurestheuseofabusiness scashfortheacquisitionofnon 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 Whatfactorshaveeffectedthebusinessunit sabilitytogeneratecash valueovertime Howcanthebusinessunit scashmanagementbeimproved Whatistheoverallbalanceofcashusers cashgeneratorsinaclient sportfolioofbusinesses Howdoesthiseffecttheclient soverallcashposition 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 ThisexerciseisbasedonTheGilletteCompany sfinancialstatementsin1996 Sinceseveralmodificationshavebeenmadetothefinancialstatements theinformationprovidedhereaftershouldnotbeusedtoanalyzeGillette sfinancialperformance NetSales CostofSales GrossProfit SG A ProfitfromOperations InterestExpense Incomebeforetaxes IncomeTaxes NetIncome 1996 9 697 7MM 3 681 7MM 6 016 0MM 4 379 7MM 1 636 3MM 111 3MM 1 525 0MM 576 3MM 948 7MM IncomeStatement TheNewEnglandRazorCompany UsethefollowingdatatocalculatethecashflowforTheNewEnglandRazorCompany 19 CU7010598KRA CashFlow Deferredtaxescanbealiabilityaccount anassetaccount orboth asisthecasehere Assets CurrentAssets Cash Marketablesecurities Receivables Inventories Deferredincometaxes Prepaidexpenses TotalCurrentAssets Property Plant Equipment LiabilitiesandStockholders Equity CurrentLiabilities Loanspayable CurrentportionofLong Termdebt Accountspayableandaccruedexpenses Incometaxespayable TotalCurrentLiabilities Long TermDebt DeferredIncomeTaxes OtherLong TermLiabilities DividendsPayable Stockholders Equity Commonstock AdditionalPaid inCapital RetainedEarnings Treasurystock TotalStockholder sEquity 76 9 7 0 2 724 6 1 358 2 359 3 227 2 4 753 2 5 192 0 9 945 2 656 7 14 5 1 964 9 298 6 2 934 7 1 490 4 298 9 630 2 100 1 671 4 707 0 4 168 7 1 056 2 4 490 9 1995 81 6 1 6 2 290 8 1 267 6 246 8 199 3 4 087 7 4 456 6 8 544 3 634 7 26 5 1 609 8 319 4 2 590 4 1 048 4 303 4 635 1 66 7 667 1 574 8 3 704 2 1 045 8 3 900 3 9 945 2 8 544 3 BalanceSheetDecember31 1996and1995 in MM 1996 Exercise Background p 2 20 CU7010598KRA CashFlow Property PlantandEquipmentLessaccumulateddepreciationNetProperty Plant andEquipment 1996 in MM 7 820 4 2 628 4 5 192 0 1995 in MM 6 885 0 2 428 4 4 456 6 Note1 Property PlantandEquipment Note2 DividendsThecompanydeclareddividendsof 484 2MMin1996 Note3 SaleofassetsAlossof 22MMwasincurredonequipmentsoldduringtheyearTheequipmenthadanoriginalcostof 244 0MMandwassoldfor 40 9MM Exercise Background p 3 Notestothefinancialstatementsareacriticalsourceofinformation 21 CU7010598KRA CashFlow OperatingCashFlow 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 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 I S I S B S B S B S I S B S SCF B SandNotes SCF B SandNotes 22 CU7010598KRA CashFlow Step1 ProfitBeforeInterestandTax Wheretofind Process Comments IncomestatementItcanbelabeledinmanydifferentways includingprofitbeforeinterestandtax profitfromoperations operatingprofit andearningsbeforeinterestandtax Ifincomestatementisprovided picknumberfromincomestatementIfincomestatementisnotprovided calculateprofitbeforeinterestandtax Profitbeforetaxes Interestincomeandotherincome earned Interestexpenseandotherexpenses incurred Anyone timegainsincludedinprofitbeforetaxes Anyone timelossesincludedinprofitbeforetaxes Profitbeforeinterestandtax PBIT Thegoalistogetprofitbeforeinterestpayments taxpayments andextraordinaryitems 23 CU7010598KRA CashFlow Step1 ProfitBeforeInterestandTax Answer Profitbeforeinterestandtax 1 636 3MM 1996 Operatingcashflowbeginswithprofitbeforeinterestandtax ShownasprofitfromoperationsonTheNewEnglandRazorCompany sincomestatement 24 CU7010598KRA CashFlow Steps2and3 DepreciationandOtherNon CashIncome Expenses Wheretofind Process Depreciation statementofcashflows orcalculatefromBalanceSheetandNotesOtherNon CashIncome Expenses Notes Reviewassetsandliabilitiesthatarenottakenintoaccountinworkingcapital elementsofworkingcapitalincludecurrentassetsandliabilitieswiththeexceptionofcash taxitems andfinancingassetsandliabilities e g interestanddividendspayable Asktwoquestions wastheitemnon cash wastheitemincludedinprofitbeforeinterestandtax Iftheanswertobothisyes adjustprofitbeforeinterestandtaxe g depreciation addbacktoprofitbeforeinterestandtaxe g lossonsaleofasset addbacktoprofitbeforeinterestandtaxIfanswertoeitherquestionisno makenoadjustments 25 CU7010598KRA CashFlow Step2 Depreciation Wheretofind Process Statementofcashflows orcalculatefromBalanceSheetandNotes Ifdepreciationisprovidedinthestatementofcashflows picknumberfromthereIfnot calculatedepreciation Accumulateddepreciationatyearend Accumulateddepreciationatyearbeginning Depreciationfromsaleofasset Depreciationexpensefortheyear Depreciationfromsaleofasset Originalcostofasset Proceedsfromsaleofasset Lossesincurred Depreciationfromsaleofasset 26 CU7010598KRA Step2 Depreciation Answer p 1 Depreciationfromsaleofasset Theoriginalcostofasset proceedsfromsaleofasset lossesincurred 244 0MM 40 9MM 22 0MM 181 1MM Depreciationexpensefor1996 Accumulateddepreciationatyearend accumulateddepreciationatyearbeginning depreciationfromsaleofasset 2 628 4MM 2 428 4MM 181 1MM 381 1MM CashFlow Depreciationisanon cashexpense Therefore itisaddedtoprofitbeforeinterestandtaxintheoperatingcashflow 27 CU7010598KRA CashFlow Step2 Depreciation Answer p 2 Thedepreciationexpensefortheyearcanbecalculatedfromthebalancesheetandnotes 28 CU7010598KRA CashFlow Step3 OtherNon CashExpenses Answer Lossonequipmentsoldduringtheyear 22 0MM fromNote3 1996 Othernon cashexpensesareaddedtoprofitbeforeinterestandtaxintheoperatingcashflow 29 CU7010598KRA CashFlow Step4 ChangeinWorkingCapital ExcludingCash Wheretofind Process Balancesheet Workingcapital currentassets currentliabilitiesRevieweachcurrentassetandcurrentliability Include Exclude CashandcashequivalentsTaxitemsincludeintaxespaidcalculation Step5 Financingassetsandliabilities suchas interestpayabledividendspayablecurrentportionoflong termdebt Operatingassetsandliabilities 30 CU7010598KRA CashFlow WorkingCapital CurrentAssetsandLiabilities IncludedinChangeinWorkingCapitalCalculation Currentassetscashmarketablesecuritiesinventoryaccountsreceivablepre paidexpensesdeferredincometaxes Currentliabilitiesaccountspayableaccruedexpensesloanspayableincometaxespayablecurrentportionoflong termdebtinterestpayabledividendspayable Includedincash notworkingcapital Includedincash notworkingcapital Includedinoperatingcashflow butnotinworkingcapital Includedinfinancingcashflow Notallcurrentassetsandliabilitiesareincludedinworkingcapital Includedinoperatingcashflow butnotinworkingcapital Includedinfinancingcashflow Includedinfinancingcashflow 31 CU7010598KRA CashFlow CurrentAssets Changesinworkingcapitalassetitemshavecashflowimpacts meanscashisbeingusedtofundthebusiness meanscashisbeinggeneratedbythebusiness Increaseinnon cashworkingcapital Decreaseinnon cashworkingcapital Decreasesincurrentassets Increasesincurrentassets IncreaseininventoriescashspenttobuyinventoriesIncreaseinpre paidexpensescashusedtopre paybills ReductionininventoriescashgeneratedbysellinginventoriesReductioninaccountsreceivablecashreceivedfromcustomers 32 CU7010598KRA CashFlow CurrentLiabilities Changesinworkingcapitalliabilityitemshavecashflowimpacts meanscashisbeingretainedbythebusiness meanscashisbeingusedtofundthebusiness Decreaseinnon cashworkingcapital Increaseinnon cashworkingcapital Decreaseincurrentliabilities Increasesincurrentliabilities IncreaseinaccountspayablecashsavedbydelayingpaymenttosuppliersIncreaseindeferredtaxliabilitycashsavedbydelayingpaymentoftaxes DecreaseinaccountspayablecashpaidtosuppliersDecreaseinaccruedexpensescashusedtoreduceaccruedexpenses 33 CU7010598KRA CashFlow Step4 ChangeinWorkingCapital Answer Loanspayable Receivables Inventories Prepaidexpenses 1995 MM 2 290 8 1 267 6 199 3 1 609 8 634 7 1996 MM 2 724 6 1 358 2 227 2 1 964 9 656 7 AssetorLiability Asset Asset Asset Liability Liability Change Increase Increase Increase Increase Increase ImpactonWorkingCapital Increase Increase Increase Decrease Decrease ImpactonWorkingCapital MM 433 8 90 6 27 9 22 0 ChangeinWorkingCapital 175 2MM 175 2MM Increase Accountspayable accruedexpenses 355 1 Anincreaseinworkingcapitalhasanegativeimpactonoperatingcashflow Increase 34 CU7010598KRA CashFlow Step5 TaxesPaid Wheretofind Process Deferredtaxes Provisionforincometaxes IncomeStatementChangeindeferredincometaxes BalanceSheetCurrenttaxexpense NotesorcalculatefromIncomeStatementandBalanceSheetIncometaxespayable BalanceSheet Incometaxespayable beginningofperiod Incometaxespayable endofperiod Deferredtaxesarisewhenpre taxincomereportedontheincomestatementdiffersfromthatshownonthetaxreturnDeferredtaxesaresometimesshownonthebalancesheetasanassetandsometimesasaliability Taxespaid Provisionforincometaxes Increaseindeferredincometaxesassetaccount Decreaseindeferredincometaxesliabilityaccount Currenttaxexpense Currenttaxexpense 35 CU7010598KRA CashFlow Step5 TaxesPaid DeferredTaxes Deferredtaxescanbeshowneitherasanassetorasaliability orevenasboth asinthisexercise Whendeferredtaxesareshownasanasset anincreaseincreasestaxespaidandisthereforeauseofcash negativeimpactoncashflow Whendeferredtaxesareshownasaliability anincreasedecreasestaxespaidandisthereforeasourceofcash positiveimpactoncashflow Deferredtaxesareacomplicationtolookoutforinthecashflowanalysis Deferredincometaxes asset Deferredincometaxes liability 1995 MM 1996 MM AssetorLiability Change CashFlowImpact Result MM 246 8 303 4 359 3 298 9 Asset Liability Increase Decrease Decrease Decrease 112 5 4 5 Netresult 117 0 MM 36 CU7010598KRA CashFlow Step5 TaxesPaid Answer p 1 Taxespaidisauseofcash thereforeitshouldbedeductedfromoperatingcashflow Provisionforincometax Increaseindeferredincometaxesassetaccount Currenttaxexpense Currenttaxexpense Incometaxespayable beginningofyear Incometaxespayable endofyear 576 3MM 112 5MM 693 3MM 693 3MM 319 4MM 298 6 MM 714 1MM Taxespaid Decreaseindeferredincometaxesliabilityaccount 4 5MM 37 CU7010598KRA CashFlow Step5 TaxesPaid Answer p 2 Incr Indef taxasset 117 0 Provisionforincometax 576 3 Taxespaidcanbecalculatedfromtheincomestatementandthebalancesheet 38 CU7010598KRA Step6 TaxImpactofInterestIncome Expense Wheretofind Process Comment Calculatefromincomestatement Interestincome expensexEffectivetaxrate Taximpactofinterestincome expense CashFlow Sinceinterestincome expenseisaresultoffinancingdecisions thetaximpactofinterestincome expensemustberemovedfromtheoperatingcashflowandincludedinthefinancingcashflowTheeffectivetaxrate Thetaximpactofinterestincome expensewillbeoffsetbyStep9ofthefinancingcashflow Provisionforincometaxes Incomebeforetaxes 39 CU7010598KRA CashFlow Step6 TaxImpactofInterestIncome Expense Answer Effectivetaxrate ProvisionforincometaxesIncomebeforetaxes 576 3MM 1 525 0MM 37 8 InterestexpenseXEffectivetaxrate Taximpactofinterestexpense 111 3MM X37 8 42 1MM Thetaximpactofinterestexpenseissubtractedfromoperatingcashflowbecauseinterestexpenseresultsfromfinancingdecisions notoperatingones 40 CU7010598KRA CashFlow OperatingCashFlowCalculation Profitbeforeinterestandtax 381 1MM 22 0MM 175 2MM 714 1MM 42 1MM 1 108 0MM 1 636 3MM TheNewEnglandRazorCompany scashflowfromoperationsis 1 108 0MM CashFlowfromOperations Depreciationexpensefortheyear Othernon cashexpense