PART 5
Income and Cash Flows
Manpower Inc. is a world leader in employment services, providing clients with temporary, contract, and permanent employees. The company is often cited as a bellwether for the health of the job market as well as the overall economy. From 2011 to 2012, annual revenues dropped from $22.0 billion to $20.7 billion, a 6 percent decline in a difficult economic environment. Earnings followed suit, falling over 21 percent to $197.6 million. At the same time, cash flows from operations increased an unbelievable 379 percent, from $69.2 million to $331.6 million. Three different measures of operating success seemed to be moving in vastly different directions. How can revenues fall while profits drop further and operating cash flows jump so dramatically? These kinds of questions are addressed in Chapters 13 and 14, which cover the income statement and statement of cash flows, respectively.
The Complete Income Statement
The Statement of Cash Flows
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