现金流分析(英文).pptx

bcCash Flow Author: Collins QianContributor: Chris NelsonMarch 1998Copyright? 1998 Bain & Company, Inc. Cash FlowAgendaThe importance of cash flowTypes of cash flowApplicationsCash flow stepsExerciseKey takeaways Cash FlowAgendaThe importance of cash flowTypes of cash flowApplicationsCash flow stepsExerciseKey takeaways Cash FlowWhat is Cash Flow?Cash flow describes the movement of cash into (sources) and out of (uses) a company.Company$$$$$Sources of cashUses of cash$$$ Cash FlowWhy Do We Care About Cash?Cash flow is the measure of a company’s strategic value.The market value of a company is equal to the present value of its expected future cash flowsVarious stakeholders demand cashinvestors demand CASH returnssuppliers and employees require CASH compensationdebtholders demand CASH paymentsAccounting methods can be used to “manage” earnings; CASH is harder to manipulateCash is King! Accounting DecisionExtended useful plant life from 35 to 45 year scheduleChanged the way it accounted for its pension planChanged the residual value assumption for cars it leasedAdjusted its inventory valuation policyCash FlowEarnings vs. Cash Flow*Earnings do not equal cash flow.Some accounting decisions impact earnings, but not cashIn 1988, General Motors made at least four decisions that impacted earnings but not cashEarnings ImpactCash Impact$790MMNone$480MMNone$270MMNone$217MMNoneTotal:$1,757MMNoneSuccessful high growth companies tend to have high earnings, but low cash flow; successful low growth companies tend to have low earnings, but high cash flow*Earnings are also called after tax profits or net income Cash FlowAgendaThe importance of cash flowTypes of cash flowApplicationsCash flow stepsExerciseKey takeaways Cash FlowTypes of Cash FlowNet cash flow is equal to the sum of the cash flows from operating, investing, and financing activities.Operating cash flowInvesting cash flowFinancing cash flowAbility of a company’s recurring operations to generate cashAbility of