Cash flow Analysis - Overview, Examples, What is Cash Flow Statement Analysis?
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In this video we are
In this video we are going to discuss what is Cash Flow Analysis? including Cash Flow Statements, Cash Flow Operations with some examples and many more.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬?
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This is one of the best methods through which an investor is able to understand how much net income a company is generating.
Cash Flow Analysis is also one of the most important analyses you must to do to know about a company’s cash outflow and cash inflow.
𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬
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Lets say we have company XYZ, which has started a business and soon earned the revenue of $200 this year.
As per their record, their expenses were $120.
Now in simple terms, we would say Company XYZ has made =$(200-120) = $80 profit.
𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐢𝐬 𝐝𝐢𝐯𝐢𝐝𝐞𝐝 𝐢𝐧𝐭𝐨 𝟐 𝐩𝐚𝐫𝐭𝐬
1. Cash flow from Operations
2. Cash flow from Investments
3. Cash flow from financing
𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗳𝗿𝗼𝗺 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀
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Cash inflows which are taken into the account that are generated from the normal business operations is known as Cash flow operations.
𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗙𝗿𝗼𝗺 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀
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The company also invests in assets which can provide them with greater returns. This would include the activities like purchase of long-term assets or selling them or taken loans.
𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗳𝗿𝗼𝗺 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀
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If there are issuing stocks or buybacks then this will come under financing activities in Cash Flow Analysis.
Borrowing and repaying loans are also included in financing activities.
If you want to know more, then you can go to this 𝗹𝗶𝗻𝗸 𝗵𝗲𝗿𝗲: https://www.wallstreetmojo.com/Cash-f...
Connect with us!
Youtube ► @wallstreetmojo
LinkedIn ► LinkedIn: mycompany
Facebook ► Facebook: wallstreetmojo
Instagram ► Instagram: wallstreetmojoofficial
Twitter ► Twitter: wallstreetmojo
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬?
----------------------------------------------
This is one of the best methods through which an investor is able to understand how much net income a company is generating.
Cash Flow Analysis is also one of the most important analyses you must to do to know about a company’s cash outflow and cash inflow.
𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬
-----------------------------------------------------
Lets say we have company XYZ, which has started a business and soon earned the revenue of $200 this year.
As per their record, their expenses were $120.
Now in simple terms, we would say Company XYZ has made =$(200-120) = $80 profit.
𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐢𝐬 𝐝𝐢𝐯𝐢𝐝𝐞𝐝 𝐢𝐧𝐭𝐨 𝟐 𝐩𝐚𝐫𝐭𝐬
1. Cash flow from Operations
2. Cash flow from Investments
3. Cash flow from financing
𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗳𝗿𝗼𝗺 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀
---------------------------------------------
Cash inflows which are taken into the account that are generated from the normal business operations is known as Cash flow operations.
𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗙𝗿𝗼𝗺 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀
-----------------------------------------------
The company also invests in assets which can provide them with greater returns. This would include the activities like purchase of long-term assets or selling them or taken loans.
𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗳𝗿𝗼𝗺 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀
----------------------------------------------------------
If there are issuing stocks or buybacks then this will come under financing activities in Cash Flow Analysis.
Borrowing and repaying loans are also included in financing activities.
If you want to know more, then you can go to this 𝗹𝗶𝗻𝗸 𝗵𝗲𝗿𝗲: https://www.wallstreetmojo.com/Cash-f...
Connect with us!
Youtube ► @wallstreetmojo
LinkedIn ► LinkedIn: mycompany
Facebook ► Facebook: wallstreetmojo
Instagram ► Instagram: wallstreetmojoofficial
Twitter ► Twitter: wallstreetmojo
6 سال پیش
در تاریخ 1397/06/08 منتشر شده
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