#Stock-Market  #Fundamental-Analysis  #Finance 

Cash Flow(CF) statement

  • It reveals how much cash the company is actually generating
  • If sales is of RS 100, then
    • if is Rs 100 received –> CF is +ve
    • if some amount (Say 30) went as Credit(Udhari)
      • then CF is cal on 70
      • But P&L is cal on 100
  • P&L statement is different from CF statement
Cash sale: 15 * 25K = Rs.375K/-
Credit sale: 5 * 25K = Rs.125K/-
Total sales: Rs.500K/-

P&L statement include --> Total Sales(Cash + Credit) Sales
CF statement include --> Cash sale

Net Cash Balance

  • The cash flow statement is broken down into three different business activities:
    • Cash flow from Opeation(CFO)
    • Cash flow from Investing(CFI)
    • Cash flow from Financing(CFF)
  • Net Cash Bal = CFO + CFI + CFF

Cash Flows From Operations

  • it is the company’s net income, but in a cash version.
  • CFO is more preferred than CFI or CFF

Cash Flows From Investing

  • the result of investment gains and losses.
  • CAPEX increases, it generally means there is a reduction in cash flow.

Cash Flows From Financing

Compare

  • CF/PAT > 1 –> Good

  • EPS == CF per share

  • NOt useful for Bank, NBFC, Infra, Real-state

Free Cashflow

  • This is surplus money
    • Used for Acquisition, Dividend

Fact sheet(press release) + Presenatation

Companies Investor presentation

Annual Report

  • Financial Statement(FS) Includes:-
    • Balance analysis
    • P&L analysis
    • Cash flow analysis
    • Notes to account
    • Shareholding