Cash Flow Statement Analyis
This week we turn to the last of the major financial statements â€“ the Cash Flow Statement.
- Locate and post a screen shot of an actual Cash Flow Statement from the latest fiscal year for one of the following companies:
- Your own Company (or any company you choose)
- Pick a Cash Flow Statement line item or ratio from the following list:
Line Item Ratio
- Net Change in Cash
- Cash Flow from Operations
- Cash Flow from Investing
- Cash Flow from Financing
- Capital Expenditures
- Dividends Paid
- Proceeds from Long Term Debt
- Cash Flow Return on Assets
- Dividend Payout Ratio
- Cap Ex to Depreciation Ratio
- Free Cash Flow
- What does this line item or ratio measure and why is it important for Management to understand this number
- From the Cash Flow Statement, identify the past 4 years of amounts for your line item or ratio. Share this data with the class using a data table or chart.
- Answer the following questions:
- What is the trend for this line item or ratio?
- Has the line item or ratio amount increased or decreased?
- Is this a â€œgood” or a â€œbadâ€ thing for this company?
- What might management do to improve this line item or ratio?