day 21 cash flow analysis 2009 spring v1

day 21 cash flow analysis 2009 spring v1 - Dr.JamesGong...

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Cash Flow Statement Analysis Dr. James Gong
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Agenda Today Case 4 discussion Cash flow statement analysis
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Cash Flow Analysis How strong is the firm’s internal cash flow  generation? Is the cash flow from operations positive or negative?  If  negative, why? Does the firm have the ability to meet its short-term  obligations from its operating cash flow? How much did the firm invest in growth? Are such investments consistent with the firm’s business  strategy? Did the firm use internal cash flow or external financing? Does the firm have free cash flow after maintaining  its capital?  What are its plans for its free cash flow?
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Company Strategy/Product Cycle Cash from Early Growth Maturity Trouble Operating activities Investing activities Financing activities - - + It is important to interpret a firm’s cash flows from the  perspectives of its business strategy and its product life  cycles. + -
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day 21 cash flow analysis 2009 spring v1 - Dr.JamesGong...

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