Cashflow Statement Analysis
Cash Flow Statement Definitions
A financial statement that reflects the inflow of revenue verses the outflow of expenses resulting from operating, investing and financing activities during a specific time period.
Cash flow statements and projections express a business's results or plans in terms of cash in and out of the business, without adjusting for accrued revenues and expenses. The cash flow statement doesn't show whether the business will be profitable, but it does show the cash position of the business at any given point in time by measuring revenue against outlays.
Cash flow is determined by looking at three components by which cash enters and leaves a company: core operations, investing and financing.
Operations- Measuring the cash inflows and outflows caused by core business operations, the operations component of cash flow reflects how much cash is generated from a company's products or services. Generally, changes made in cash, accounts receivable, depreciation, inventory and accounts payable are reflected in cash from operations.
Investing- Investing activities focuses on the purchase of the long-term assets a company needs in order to make and sell its products, and the selling of any long-term assets. It reports changes in equipment, assets or investments relate to cash from investing.
Financing- Financing activities include the inflow of cash from investors such as banks and shareholders, as well as the outflow of cash to shareholders as dividends as the company generates income. Other activities which impact the long-term liabilities and equity of the company are also listed in the financing activities section of the cash flow statement.
Analysis of Cash Flow Statement
% changes of cash and cash equivalents balance Dec-03 Dec-04 Dec-05 Dec-06
Shangri-La Asia 18.23% 24.63% 42.98% 19.61%
HK&SH -4.74% 19.70% 17.28% 49.47%
Cash & Cash Equivalents at End of...
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