现金流动分析(英文)

1、Author: Collins Qian,Contributor: Chris Nelson,bc,Cash Flow,March 1998,Copyright 1998 Bain & Company, Inc.,2,CU7010598KRA,Cash Flow,Agenda,The importance of cash flow Types of cash flow Applications Cash flow steps Exercise Key takeaways,3,CU7010598KRA,Cash Flow,Agenda,The importance of cash flow Types of cash flow Applications Cash flow steps Exercise Key takeaways,4,CU7010598KRA,Cash Flow,What is Cash Flow?,Cash flow describes the movement of cash into (sources) and out of (uses) a company.,So

2、urces of cash,Company,Uses of cash,$,$,$,$,$,$,$,$,5,CU7010598KRA,Cash Flow,Why Do We Care About Cash?,The market value of a company is equal to the present value of its expected future cash flows Various stakeholders demand cash investors demand CASH returns suppliers and employees require CASH compensation debtholders demand CASH payments Accounting methods can be used to “manage” earnings; CASH is harder to manipulate,Cash is King!,Cash flow is the measure of a companys strategic value.,6,CU7

3、010598KRA,Cash Flow,Earnings vs. Cash Flow*,Some accounting decisions impact earnings, but not cash In 1988, General Motors made at least four decisions that impacted earnings but not cash,Earnings do not equal cash flow.,*Earnings are also called after tax profits or net income,Successful high growth companies tend to have high earnings, but low cash flow; successful low growth companies tend to have low earnings, but high cash flow,Earnings Impact,$790MM,$480MM,$217MM,$270MM,Cash Impact,None,N

4、one,None,None,Total:,$1,757MM,None,7,CU7010598KRA,Cash Flow,Agenda,The importance of cash flow Types of cash flow Applications Cash flow steps Exercise Key takeaways,8,CU7010598KRA,Cash Flow,Types of Cash Flow,Net cash flow is equal to the sum of the cash flows from operating, investing, and financing activities.,Operating cash flow,Investing cash flow,Financing cash flow,Ability of a companys recurring operations to generate cash,Ability of a companys investment decisions to generate cash,How a

5、 company funds its operations,Operating profits Decrease in working capital,Sale of fixed assets,Long-term issuance of shares,Examples of sources:,Operating losses Increase in working capital,Purchase of fixed assets,Repayment of loans Payment of dividends,Examples of uses:,9,CU7010598KRA,Cash Flow,Operating Cash Flow,*Investing activities not related to ongoing operations (such as the purchase or sale of divisions or companies, or investments in unrelated businesses) are not included in investi

6、ng cash flow. They are included in financing cash flow.,Operating cash flow excludes all cash flows related to a firms capital structure cash generation ability is independent of how a firm is financed It excludes one-time events these are not related to a firms recurring operations Operating cash flow is used to measure the strategic value of a business for company valuations, operating and investing cash flows are used, not financing cash flow,Bain is usually more interested in operating and i

7、nvesting* cash flow than in financing cash flow,Operating cash flow measures the ability of a businesss recurring operations to generate cash.,10,CU7010598KRA,Cash Flow,Investing Cash Flow,Investments in ongoing operations - property, plant and equipment - are included in investing cash flow cash is used to replace assets as they wear out if a business is to grow, additional assets must be acquired in some cases, the cash used to acquire these assets is generated from the sale of existing noncur

8、rent assets such cash inflows, however, seldom cover the entire cost of asset acquisitions. Often times cash flow from operations is used to finance acquisitions, or, failing a positive operating cash flow, external financing is used Pure financing activities are not included in investing cash flow. They are included in financing cash flow purchase or sale of divisions or companies investments in unrelated businesses Investing cash flows relating to ongoing operations are used as a measure of th

9、e strategic value of a business. Those that are purely financing/investment mechanisms are used to evaluate the financial strategy of the business,Investing cash flow measures the use of a businesss cash for the acquisition of non-current assets.,11,CU7010598KRA,Cash Flow,Financing Cash Flow,Major types of financing cash flow include: debt-related transactions changes in long-term debt interest income and expense equity-related transactions changes in common and preferred stock dividends short-term investments long-term asset and liability transactions purchase or sale of a division or company changes in long-term liabilities,Financing cash flow captures all the non-operating cash changes experienced during the year, and it provides information on how a company is funding its operations.,12,CU7010598KRA,Cash Flow,Statement of Cash Flows,The SCF is divided into three sections: operating, investing, and financing Each section shows sources and uses of f

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