财务报表分析ch07.ppt

A Look At This Chapter In this chapter we analyze cash flow measures for insights into all business activities, with special emphasis on operations. Attention is directed at company and business conditions when interpreting cash flows. We also consider alternative measures of cash flows. Analysis Objectives Explain the relevance of cash flows in analyzing business activities Describe the reporting of cash flows by business activities Interpret cash flows from operating activities Analyze cash flows under alternative company and business conditions Describe alternative measures of cash flows and their usefulness Statement of Cash Flows Net cash flow is the end measure of profitability. It is cash, not income, that ultimately repays loans, replace equipment, expands facilities, and pays dividends. Accordingly, analyzing a company’s cash inflows and outflows, and their operating, financing, or investing sources, is one of the most important investigative exercises. Cash flow analysis helps in assessing liquidity, solvency, and financial flexibility. Statement of Cash Flows Liquidity(流动性) is the nearness to cash of assets and liabilities Solvency（偿债能力） is the ability to pay liabilities when they mature. Financial flexibility (财务灵活性) is the ability to react and adjust to opportunities and adversities. Statement of Cash Flows Indirect Method Net income is adjusted for non-cash income (expense) items and accruals to yield cash flow from operations. The advantage: the disclosure of a reconciliation of differences between net income and operating cash flows. This can aid some users that predict cash flows by first predicting income and then adjusting income for leads and lags between income and cash flows. The indirect method is most commonly employed in practice and we use it initially to illustrate preparation of the statement of cash flows. Statement of Cash Flows Direct Method Each income item is adjusted for its related accruals Both methods yield identical resul