《现金分析的演示》PPT课件.ppt

1、2020/8/27,Cash Flow Analysis,1,Cash Flow Analysis,Session 6,天马行空官方博客： ；QQ:1318241189；QQ群：175569632,2020/8/27,Cash Flow Analysis,2,This session,How to calculate and analysis a corporations Cash Flow analysis How to evaluate the solvency of a company based on its balance sheet and cash flows,2020/8/27

2、,Cash Flow Analysis,3,In case you missed the last session.,We covered . I&E Balance Sheets The linkages between I&E and Balance Sheets,2020/8/27,Cash Flow Analysis,4,Business Challenges,Earn Profits Convert Profits to Cash as Fast as Possible,2020/8/27,Cash Flow Analysis,5,Cash Flow,From Operating A

3、ctivities From Investing Activities From Financing Activities,2020/8/27,Cash Flow Analysis,6,Balance Sheet Assets Cash +Accounts Receivable +Inventory +Prepaid Expenses +Property, Plant & Equipment +Accumulated Depreciation = Total Assets Liabilities & Equity Accounts Payable + Accrued Operating Exp

4、enses + Accrued Interest Payable + Income Tax Payable + Notes Payable + Capital stock + Retained Earnings = Total Liability & Equity,Cash Flow Statement Cash Flow From Operating Activities Net Income - Accounts Receivable Increase - Inventory Increase - Prepaid Expenses Increase + Depreciation Expen

5、se - Accounts Payable Increase - Accrued Expenses Increase - Income Tax Payable = Cash Flow form Operating Activities + Cash Flow From Investing Activities Purchases of Property, Plant & Equipment + Cash Flows From Financing Activities Short-Term Debt Borrowing + Long-Term Debt Borrowing + Capital S

6、tock Issue + Dividends Paid to Stockholders = Increase in Cash for Year,Balance Sheet / Cash Flow Interactions,2020/8/27,Cash Flow Analysis,7,Cash Flow From Operations,Balance Sheet last year,Balance Sheet this year,Income & Expense this year,Changes in the Balance sheet “closets plus the depreciati

7、on adjusted income,2020/8/27,Cash Flow Analysis,8,Cash Flow from Operations,Profit (“the bottom line” of the I&E Statement) Plus 7 year-to-year change adjustments (Balance Sheet) Accounts receivable Inventory Prepaid expenses Depreciation Accounts Payable Accrued Expenses Income Tax Payable,Cash flo

8、w, like the Balance Sheet uses CASH ACCOUNTING Not ACCRUAL ACCOUNTING,2020/8/27,Cash Flow Analysis,9,Operating Cash Flow Comments,Net Income is from the bottom line of I&E Statement (Depreciation Adjusted) Increases in Operating Assets decrease cash flow from profit (AR, Inventory, Prepaid Expenses)

9、 Increases in liabilities “help” cash flow (AP, Accrued Expenses, Income Tax Payable),2020/8/27,Cash Flow Analysis,10,Growth Consumes Ca$h!,Increasing revenue with controlled expenses will result in increased profits Revenue increases also drive increases in operating assets Cash increases are not a

10、s large as profit increases but are delayed because of AR Declining businesses experience opposite effect and can experience increased “cash flow” over profit changes,2020/8/27,Cash Flow Analysis,11,Depreciation & Operating Cash Flow,Depreciation: Since the company paid cash for the fixed assets whe

11、n it bought them, the company does not consume cash a second time when it uses them The depreciation of the I&E Statement is therefore “added back” for cash flow purposes,2020/8/27,Cash Flow Analysis,12,Balance Sheet Assets Cash +Accounts Receivable +Inventory +Prepaid Expenses +Property, Plant & Eq

12、uipment +Accumulated Depreciation = Total Assets Liabilities & Equity Accounts Payable + Accrued Operating Expenses + Accrued Interest Payable + Income Tax Payable + Notes Payable + Capital stock + Retained Earnings = Total Liability & Equity,Cash Flow Statement Cash Flow From Operating Activities N

13、et Income - Accounts Receivable Increase - Inventory Increase - Prepaid Expenses Decrease + Depreciation Expense - Accounts Payable Increase - Accrued Expenses Increase = Cash Flow form Operating Activities Cash Flow From Investing Activities - Purchases of Property, Plant & Equipment Cash Flows Fro

14、m Financing Activities + Short-Term Debt Borrowing + Long-Term Debt Borrowing + Capital Stock Issue - Dividends Paid to Stockholders = Increase in Cash for Year,Balance Sheet / Cash Flow Interactions,2020/8/27,Cash Flow Analysis,13,Purchases of Property, Plant & Equipment,Fixed Assets to modernize o

15、r expand capacity Will be capitalized (depreciated),2020/8/27,Cash Flow Analysis,14,The Depreciation Story,Capital assets are a cash flow out when the asset is bought (Cash Flow/Investing) The bought assets are added to the Property, Plant & Equipment line of the Balance Sheet The appropriate deprec

16、iation is allocated for in the period that it is “used” on the I&E The sum of the accumulated depreciations from the I&E is subtracted from the purchase price of the assets on the balance sheet The allocated I&E depreciation is “added back” to the Income in the Cash Flow analysis,2020/8/27,Cash Flow

17、 Analysis,15,Balance Sheet Assets Cash +Accounts Receivable +Inventory +Prepaid Expenses +Property, Plant & Equipment +Accumulated Depreciation = Total Assets Liabilities & Equity Accounts Payable + Accrued Operating Expenses + Accrued Interest Payable + Income Tax Payable + Notes Payable + Capital

18、stock + Retained Earnings = Total Liability & Equity,Cash Flow Statement Cash Flow From Operating Activities Net Income - Accounts Receivable Increase - Inventory Increase - Prepaid Expenses Decrease + Depreciation Expense - Accounts Payable Increase - Accrued Expenses Increase = Cash Flow form Oper

19、ating Activities Cash Flow From Investing Activities - Purchases of Property, Plant & Equipment Cash Flows From Financing Activities + Short-Term Debt Borrowing + Long-Term Debt Borrowing + Capital Stock Issue - Dividends Paid to Stockholders = Increase in Cash for Year,Balance Sheet / Cash Flow Int

20、eractions,2020/8/27,Cash Flow Analysis,16,Cash From Financing Activities,When operating cash flows are insufficient to fund company operations, the finance department must raise cash for the company Loans Line of credit (short-term debt) Notes, Bonds or Debentures (long-term debt) Issue Stock Divide

21、nds paid to Stockholders are considered a financing cash flow,2020/8/27,Cash Flow Analysis,17,IBM 2001 Cash Flow (M$),Cash Flow From: 2001 2000 1999 Operations 14,265 9,274 10,111 Investing (6,106) (4,248) (1,669) Financing (5,309) (6,359) (8,625) Exchange rate changes (83) (1470) (149) Net Change i

22、n Cash 2,767 (1,480) (332) Cash on 1/1 3,563 5,043 5,375 Cash on 12/31 6,330 3,563 5,043 Days of cash 30 16 23,2020/8/27,Cash Flow Analysis,18,IBM 2001 Cash Flow from Operations (M$),2000 2001 Net Income 7,723 8,093 Depreciation 4,195 4,513 Amortization of Software 625 482 Deferred income taxes 658

23、29 Gains on asset sales (317) (792) Write-down on impaired investments 405 - Receivables 3,284 (4,720) Inventories 337 (55) Other assets (545) (643) Accounts payable (969) 2,245 Other Liabilities (1,131) 122 Cash from Operations 14,265 9,274,2020/8/27,Cash Flow Analysis,19,IBM 2001Cash Flow from Inv

24、esting (M$),2001 2000 Plant, rental machines and other property (5,660) (5,616) Disposition of Plant, rental machines and other property 1,165 1,619 Investments in software (655) (565) Purchases of marketable securities and other investments (778) (750) Proceeds from marketable securities and other

25、investments 738 1,393 Acquisitions (916) (329) Net Cash used in Investing Activities (6,106) (4,248),2020/8/27,Cash Flow Analysis,20,IBM 2001Cash Flow from Financing (M$),2001 2000 Proceeds from new debt 4,535 9,604 Short-term borrowings 2,926 (1,400) Payments to settle debt (7,898) (7,561) Preferre

26、d stock transactions net (254) - Common stock transactions net (3,652) (6,073) Cash Dividends paid (966) (929) Net Cash Used in Financing (5,309) (6,359),2020/8/27,Cash Flow Analysis,21,Motorola 2000 Cash Flows,Cash Flow From: 2000 1999 1998 Operations (1,164) 2,140 1,295 Investing (4,091) (960) (3,

27、079) Financing 5,119 788 1,872 Exchange rate changes (100) (33) 34 Net Change in Cash (236) 1,935 122 Cash on 1/1 3,537 1,602 1,480 Cash on 12/31 3,301 3,537 1,602 Days of Cash 33 40 18,2020/8/27,Cash Flow Analysis,22,Motorola 2000 Cash Flow from Operations (M$),Net Income 1,318 Depreciation 2,522 C

28、harges for re-organization 1,483 Deferred income taxes 658 Acquired in-process R&D charges 332 Sales of investments & businesses (1,570) Deferred income taxes 239 Write-down on impaired investments 405 Receivables (1,471) Inventories (2,305) Other assets (532) Accounts payable (666) Other Liabilitie

29、s (514) Cash from Operations (1,164),2020/8/27,Cash Flow Analysis,23,Cooking!,Controlling discretionary expenses Repairs & maintenance Training & development Travel Increasing revenue “Stuffing the channels” Lying,Fraud - go to jail,2020/8/27,Cash Flow Analysis,24,Enronitis,Enron Dynergy Inc., Relia

30、nt Resources Inc., CMS Energy Tyco GE Boeing IBM,2020/8/27,Cash Flow Analysis,25,3 Key Financial Aspects of a Business,Cash Flows Maintaining Solvency Profitability,2020/8/27,Cash Flow Analysis,26,Solvency - Again,The Current Ratio: Test of Short-Term Solvency Current Ratio = current assets / current liabilities General Rule of thumb: Should be gre