Book description
This book is the definitive guide to cash flow statement analysis and forecasting. It takes the reader from an introduction about how cash flows move within a business, through to a detailed review of the contents of a cash flow statement. This is followed by detailed guidance on how to restate cash flows into a template format. The book shows how to use the template to analyse the data from start up, growth, mature and declining companies, and those using US GAAP and IAS reporting. The book includes real world examples from such companies as Black and Decker (US), Fiat (Italy) and Tesco (UK). A section on cash flow forecasting includes full coverage of spreadsheet risk and good practice. Complete with chapters of particular interest to those involved in credit markets as lenders or counter-parties, those running businesses and those in equity investing, this book is the definitive guide to understanding and interpreting cash flow data.
Table of contents
- Cover
- Series
- Title Page
- Copyright
- Dedication
- Introduction
-
Section One: Historic Cash Flow Analysis
- Chapter 1: Understanding How Cash Flows in a Business
-
Chapter 2: Understanding Cash Flows Properly
- INTRODUCTION
- THE NATURE OF THE BEAST
- CASH FLOWS FROM OPERATING ACTIVITIES
- CASH FLOWS FROM OPERATING ACTIVITIES – DETAILED REVIEW
- CASH FLOWS FROM INVESTING ACTIVITIES
- CASH FLOWS FROM INVESTING ACTIVITIES – DETAILED REVIEW
- CASH FLOWS FROM FINANCING ACTIVITIES
- CASH FLOWS FROM FINANCING ACTIVITIES – DETAILED REVIEW
- THE NATURE OF THE BEAST – CONCLUSION
- SUMMARISING AND RESTATING CASH FLOWS FOR ANALYSIS – INTRODUCTION
- CONCLUSION
- ANALYSING THE CASH FLOWS IN THE MASTER TEMPLATE
- THE STATE OF PLAY
- Chapter 3: Start-up, Growth, Mature, Decline
- Chapter 4: Restating the Cash Flows of a Real Business
-
Chapter 5: Restating US GAAP Cash Flows
- INTRODUCTION
- THE US GAAP CASH FLOW ANALYSIS PROCESS
- SOURCES OF CASH FLOW DATA
- RESTATING THE CASH FLOWS FROM OPERATING ACTIVITIES
- IDENTIFYING THE OPERATING CASH MARGIN (AFTER INTEREST AND TAX PAYMENTS)
- RESTATING THE CASH FLOWS FROM INVESTING ACTIVITIES
- RESTATING THE CASH FLOWS FROM FINANCING ACTIVITIES AND DEALING WITH THE FINAL CASH BALANCE
- INTRODUCING THE INTEREST AND TAXATION CASH FLOWS TO A US GAAP CASH FLOW TEMPLATE
- CONCLUSION
-
Chapter 6: Analysing the Cash Flows of Mature Businesses
- WHAT DO WE MEAN BY ‘MATURE’?
- THE FIRST PROBLEM: INFLATION
- THE SECOND PROBLEM: THE MARKET GROWTH RATE
- THE THIRD PROBLEM: DO WE REALLY MEAN ‘MATURE’ COMPANY?
- THE FOURTH PROBLEM: WHERE MATURE BUSINESSES COMPETE
- IN CASH FLOW TERMS, WHAT CONSTITUTES SUCCESS FOR MATURE COMPANIES?
- THE CONSEQUENCES OF FAILURE TO GENERATE SUFFICIENT CASH FLOW
- ISSUES RELATED TO MATURE BUSINESS DIVERSITY
- ISSUES RELATED TO BUSINESS SIZE
- SUMMARY
-
Chapter 7: Analysing the Cash Flows of Growth Businesses
- WHAT DO WE MEAN BY ‘GROWTH’?
- IRRATIONAL INVESTOR BEHAVIOUR
- NEGATIVE CASH FLOWS
- CORPORATE COLLAPSE
- TO SUMMARISE THIS INTRODUCTION
- IN CASH FLOW TERMS, WHAT CONSTITUTES SUCCESS FOR GROWTH BUSINESSES?
- GROWTH CASH FLOW EXAMPLES: THE SUCCESS
- GROWTH CASH FLOW EXAMPLES: THE INVESTOR
- CASH FLOW GROWTH EXAMPLES: THE ACQUIRER
- CASH FLOW GROWTH EXAMPLES: THE ASPIRANT
- SUMMARY
- Chapter 8: Growth and Mature – Further Analysis Issues
- Chapter 9: Analysing the Cash Flows of Start-up Businesses
- Chapter 10: Analysing the Cash Flows of Decline Businesses
- Chapter 11: What to do about Bad Cash Flows
- Chapter 12: Cash Versus Profit as a Measure of Performance
- Chapter 13: Cash Flow Analysis and Credit Risk
- Chapter 14: Cash Flow Analysis and Performance Measurement
- Chapter 15: Analysing Direct Cash Flow Statements
- Chapter 16: Generating a Cash Flow Summary from Profit and Loss Account and Balance Sheet Data
- Chapter 17: Summarising Historic Free Cash Flow
- Section Two: Forecasting Cash Flows
- Index
Product information
- Title: Cash Flow Analysis and Forecasting: The Definitive Guide to Understanding and Using Published Cash Flow Data
- Author(s):
- Release date: May 2012
- Publisher(s): Wiley
- ISBN: 9781119962656
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