Cash Flow Statement and Ratios
corporatefinanceinstitute.com
,Session objectives
Understand the inflows Calculate solvency and
and outflows of cash leverage ratios
throughout the year
Examine funding options
for an organization looking
to grow
corporatefinanceinstitute.com
,Financial analysis
There are many important steps, such as trend and ratio analysis, in preparing a financial analysis.
The starting point is the financial statements:
Income Balance Statement of
statement Sheet Cash Flows
corporatefinanceinstitute.com
, Analyzing cash flow groups
Each category of the statement of ca
Cash flow flows enables you to analyze the
movement of funds in the company
Asset Operational Financing strategy
management management
Asset management relates specifically to Operational management refers Financing strategy reflects decisions m
the management of investment in the to the operational strategy by management in relation to the
company and is where commitment to ”leverage” of the company.
followed by an organization.
growth can be seen. • Debt / Equity
• Margin management
• Working capital • Long-term / Short-term
• Absorbing • Volume management
• Other instruments
• Releasing • Operating profit
• Interest / Dividends
• Capital expenditure
• >amortization
• <amortization
• Acquisitions
corporatefinanceinstitute.com
corporatefinanceinstitute.com
,Session objectives
Understand the inflows Calculate solvency and
and outflows of cash leverage ratios
throughout the year
Examine funding options
for an organization looking
to grow
corporatefinanceinstitute.com
,Financial analysis
There are many important steps, such as trend and ratio analysis, in preparing a financial analysis.
The starting point is the financial statements:
Income Balance Statement of
statement Sheet Cash Flows
corporatefinanceinstitute.com
, Analyzing cash flow groups
Each category of the statement of ca
Cash flow flows enables you to analyze the
movement of funds in the company
Asset Operational Financing strategy
management management
Asset management relates specifically to Operational management refers Financing strategy reflects decisions m
the management of investment in the to the operational strategy by management in relation to the
company and is where commitment to ”leverage” of the company.
followed by an organization.
growth can be seen. • Debt / Equity
• Margin management
• Working capital • Long-term / Short-term
• Absorbing • Volume management
• Other instruments
• Releasing • Operating profit
• Interest / Dividends
• Capital expenditure
• >amortization
• <amortization
• Acquisitions
corporatefinanceinstitute.com
