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Net Present Value - NPV
Net Present Value - NPV
Cash flow statement (only after the actual payment has happened)
Balance sheet
Income statement (as soon as the activity is accrued)
3 major cash flow categories:
Final change in Cash flow =operating + investment + financing cash
flow
Operating cash flows (CFO)
Core business
directly generated by manufacturing or selling a product
Keep the business operating
Investement cash flows (CFI)
Long-term investments into assets (property or plants)
Financing cash flows (CFF)
Activities such as inssurance and repurchase of bonds, equity,
and dividends
如何算 cash flow?
在 income-statement 中,可以算出 operating cash flow
因为
EBIT - working capital (earnings before interest and
taxes)=gross profit-deprecitation,
所以
Actual cash flow=EBIT+depreciation-taxes
在 balance sheets 中,可以算出 investment and financing cash
flow
Cash-outflow=increase of assets
Cash-inflow=decrease of inventory
Cash-inflow=increase of equity/liabilities
Net cash flow: the amount of money being transferred in
and out of the business' accounts. It reports whwther a
company's liquid assets are increasing or decreasing. Positive
net cash flow indicates that a company can reinvest in
operations, pay expenses, return cash to shareholders, and
pay off debt.
Net cash flow = cash inflows - cash outflows
Net cash flow = CFO + CFI + CFF
Free cash flow: the amoount of cash left over after all
operating expenses, and capital expenditures are taken care
of. It reports whether a company is strategically acquiring
and utilizing ist available cash. Having free cash flow indicates
that a company can pay dividends and engage in share
buybakcs with its shareholders
Free Cash flow 的作用是算 company valuation
Free cash flow
important for investor
Depicting the amount of cash which can flow to a
company's security holders im terms of dividends or
interests without necessary money for daily
operations
To determin the company value applying
discounting principle
算 free cash flow 的原则
从 company's income 入手
加上算 EBIT 时被减去的,但是没有对现金流产生实际影响的 cash
(amortization, depreciation)
减去为了维持目前经营需要付出的 cash(taxes, working capital,
capital expenditure)