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Cash flow Analysis | What is Cash Flow Analysis? | Examples
 
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In this video we are going to discuss what is Cash Flow Analysis? including Cash Flow Statements, Cash Flow Operations with some examples and many more. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬? ---------------------------------------------- This is one of the best methods through which an investor is able to understand how much net income a company is generating. Cash Flow Analysis is also one of the most important analyses you must to do to know about a company’s cash outflow and cash inflow. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 ----------------------------------------------------- Lets say we have company XYZ, which has started a business and soon earned the revenue of $200 this year. As per their record, their expenses were $120. Now in simple terms, we would say Company XYZ has made =$(200-120) = $80 profit. 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐢𝐬 𝐝𝐢𝐯𝐢𝐝𝐞𝐝 𝐢𝐧𝐭𝐨 𝟐 𝐩𝐚𝐫𝐭𝐬 1. Cash flow from Operations 2. Cash flow from Investments 3. Cash flow from financing 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗳𝗿𝗼𝗺 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 --------------------------------------------- Cash inflows which are taken into the account that are generated from the normal business operations is known as Cash flow operations. 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗙𝗿𝗼𝗺 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 ----------------------------------------------- The company also invests in assets which can provide them with greater returns. This would include the activities like purchase of long-term assets or selling them or taken loans. 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗳𝗿𝗼𝗺 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀 ---------------------------------------------------------- If there are issuing stocks or buybacks then this will come under financing activities in Cash Flow Analysis. Borrowing and repaying loans are also included in financing activities. If you want to know more, then you can go to this 𝗹𝗶𝗻𝗸 𝗵𝗲𝗿𝗲: https://www.wallstreetmojo.com/Cash-flow-analysis/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
Views: 3906 WallStreetMojo
How Do You Read a Cash Flow Statement? | Phil Town
 
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There are 3 important financial statements you should look at before investing in a company: balance statement, income statement, and cash flow statement. http://bit.ly/1OyEoVM A cash flow statement is used to determine if a company we're researching has enough money available to function. In this video, I discuss the red flags you should look out for when reviewing a cash flow statement and how to determine if there is enough cash flow growth to make it a worthwhile investment. To sign-up for my Transformational Investing Webinar, visit the link above. Think you have enough money saved for retirement? Learn more: http://bit.ly/2253Zvj Don't forget to subscribe to my channel here: http://ow.ly/RNAnK _____________ For more great Rule #1 content and training: Podcast: http://bit.ly/1OyE3Ci Blog: http://bit.ly/1mElRMI Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: +PhilTownRule1Investing Pinterest: https://www.pinterest.com/rule1investing/ how to read cash flow, how to read cash flow statement, reading cash flow statement, what is a cash flow statement, how to do cash flow,
Analysis of the Cash Flow Statement
 
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Learn how to read and analyze a cash flow statement with examples of cash flow statements
Views: 34937 Debby Bloom-Hill
27. How to read a cash flow statement
 
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Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we evaluated the cash flow statement of Walmart, Sears, Intel, and Kodak. The lesson provides good and bad cash flow statements so students could see the difference between risky and healthy companies. One of the key factors learned in this lesson was the importance of the operating activity and the operating activities section of the statement. Since the investing and financing activity are dependent upon the operating activity, it became obvious this section is the lifeblood of any business.
Views: 240073 Preston Pysh
Cash Flow Statement explained
 
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Cash flow statement tutorial. How does a cash flow statement work? How do cash balance and cash flow relate to each other? What is cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities? You will find all of these explained in this Finance Storyteller video, including an example of the cash flow statement for Shell (AMS: RDSA). The cash flow statement is one of the three main financial statements. As the cash flow statement explains how much cash has come in and gone out during a year, and what the sources and uses of this cash flow were, you could see the cash flow statement as an explanation of how the cash balance (one of the most important assets) has developed between two balance sheets. Cash is king. It is critical at every stage of a company’s lifecycle. When you open your own business, you need cash to get started. You will need cash to grow and expand. If a company runs out of cash to pay its bills, it’s game over. What you see in a cash flow statement should be a direct reflection of a company’s strategy. Is the company spending enough to build its unique and sustainable competitive advantage? Are customers willing to pay for the products and services that the company supplies? Is the company able to reward its investors for the risk they have taken, by paying a dividend? These and other questions can be answered by analyzing a cash flow statement. It’s nice to have the total numbers of the cash balance as well as the total net cash flow, but it doesn’t tell us much yet about what goes on inside the company. To get a more meaningful look, we have to drill a level deeper into cash flow. That’s why a cash flow statement is split into three sections. The first section will have the word “Operating” in it, the second “Investing”, the third “Financing”. Many companies will call the first section “Cash From Operating Activities” or CFOA, or a variation on that wording like “Cash Flow From Operations”. Cash From Operating Activities is roughly the cash inflow from customers paying the company minus the cash outflow of the company paying for purchases from suppliers, minus the cash outflow of salaries paid to employees, and minus the cash outflow of taxes paid to governments. For most mature companies in good health, the cash flow from operating activities is a net cash inflow. The second section is often called “Cash From Investing Activities”, or a variation on that wording. This is where Capital Expenditures (a cash outflow), acquisitions (a cash outflow) and divestments (a cash inflow) are recorded. Cash From Investing Activities tends to be a net cash outflow for most companies in most years. The third section is often called “Cash From Financing Activities”, or a variation on that wording. This one can go either way: a net cash inflow or a net cash outflow. Does the company need money and attract new debt to finance itself? Then there will be a cash inflow. Does the company have a lot of cash on its balance sheet and no plans to put that cash to any productive use? Then the company might be paying a dividend to shareholders, which is a cash outflow. If you are interested in a more in-depth look at the similarities between two very capital-intensive industries (oil and telecom), please check the blog article on my website: http://www.devroe.org/?p=80 Understanding cash flow is a key element of “getting the picture” of a company. As an investor, analyst, employee or supplier, it is advisable to understand both the actual numbers of past years, as well as the intent going forward. Related videos: Cash flow statement analysis Tesla 2016 through 2018 https://www.youtube.com/watch?v=49TxnoP4u8Y Free Cash Flow explained simply and with examples https://www.youtube.com/watch?v=gl3OLtEX2PM Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 102139 The Finance Storyteller
The Basics of Cash Flow Analysis
 
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Watch the latest from New Venture Mentor: "How to Beat Your Bigger Competitors in Attracting and Retaining Top Talent" https://www.youtube.com/watch?v=b4OD44N7a6k --~-- Learn the basics of cash flow analysis to maintain healthy finances at your small business or startup. See the full post here: http://www.catecosta.com/basics-cash-flow-analysis-startups-small-businesses/ If you'd like to purchase the ebook I mentioned, you can do so here: http://www.amazon.com/dp/B00HMMO7M6 If you'd like to check out the other cash flow video I mentioned you can find it here: http://youtu.be/aoyLRd2QyXs Are you an entrepreneur or aspiring entrepreneur who needs help turning your fabulous idea into a profit-generating startup or small business? Visit www.CateCosta.com to learn how to build your business so you can live your dream. You can also find me on Twitter: https://twitter.com/cate_costa, Facebook: https://www.facebook.com/cate.l.costa, and Google+: https://plus.google.com/u/0/+CateCosta/posts. Need personalized help? Make an appointment [https://www.popexpert.com/experts/da2ac5ed-bca2-4961-b2e7-16591a39d9f4?utm_campaign=meet_me_button&utm_medium=widget&utm_source=expert]. New clients get 50% off the first session.
Views: 54856 Cate Costa
Introduction to the Cash Flow Forecast
 
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The concept and basic structure of a cash flow forecast is explained in this short revision video.
Views: 62963 tutor2u
#1 Cash Flow Statement ~ Introduction and Basic Concept
 
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Described concept and procedure to prepare a Cash Flow Statement as per Accounting Standard-3 Students may also watch following lectures : 1. Cash Flow Statement (Treatment of Tax & Dividend) : https://www.youtube.com/watch?v=q-KZ-INDHNs 2. Concept behind formation of a Formula (Ratio Analysis) : https://www.youtube.com/watch?v=76gMXQBnbps 3. Balance Sheet of a Company : https://www.youtube.com/watch?v=IuExxeB4XNk Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing #CashFlowStatement #Accounting
Views: 507114 CA. Naresh Aggarwal
3 Minutes! Cash Flow Statement Tutorial for Cash Flow Statement Analysis Explained
 
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Clicked here http://mbabullshit.com/ and WOW I'm shocked how easy so I'm sharing this... share it with your friends too! If You Liked it, Support my Free Videos at https://www.patreon.com/MBAbull Cash Flow Statement Explained In 3 Minutes What does it really mean when we say a company is "earning a lot?" If a company gets $100 this year and has costs and expense of $60, then we can easily say that it "earned" $40, right? But what if... The company makes $100 in sales this year, only collects $80 in cash this year, and then will collect the remaining $20 next year? This year's Cash Flow Statement would only record the actual collected $80... and not the total sales of $100 And what if... the company had $60 in costs, expenses, capital expenditures, and taxes but only paid $50 in cash this year, and will pay the $10 balance next year? This year's Cash Flow statement would only record the paid $50, and not the total costs/expenses of $60 In a Cash Flow statement, the only thing that matters is how much a business gets in cash... and how much it pays in cash. This year's Cash Flow Statement also includes cash collected for previous years' sales or even future years' sales... as long as it's collected THIS YEAR. This year's Cash Flow Statement also includes cash PAID for previous years or even future years' costs, expenses, capital expenditures, and taxes... as long as it's paid THIS YEAR. Note that a Cash Flow statement can be for any time period, and not only a 1-year time period like we used in this simple example. See? So that's the super simplified explanation of a Cash Flow Statement. Would you like to learn how to make your own Cash Flow Statement? Check out my FREE video at MBAbullshit.com . See ya there!
Views: 289769 MBAbullshitDotCom
Free Cash Flow explained
 
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What is Free Cash Flow (FCF) and how do I calculate it? What is Free Cash Flow used for? What is the Free Cash Flow performance of Exxon Mobil (NYSE: XOM), Facebook (NASDAQ: FB), General Electric (NYSE: GE) and General Motors (NYSE: GM)? This Finance Storyteller video provides an in depth look at common and alternative definitions of Free Cash Flow (FCF), compares the profit view and the cash flow view of looking at a company’s performance, and analyzes the Free Cash Flow numbers published by Exxon Mobil, Facebook, General Electric and General Motors. Free Cash Flow is usually defined as: Cash flow not required for operations or reinvestment Cash flow available for distribution among all the securities holders (debt or equity) of an organization Calculation: Cash From Operating Activities (CFOA) minus Capital Expenditures Unfortunately, the Free Cash Flow definitions that companies use are not always the same. Some stay very close to what you see here, but we will also see some alternative definitions along the way in this video. Related videos: Cash Flow Statement explained https://www.youtube.com/watch?v=mZBjsIYrLvM GAAP versus non-GAAP https://www.youtube.com/watch?v=ewzlgnGtfmg&t=74s T-accounting https://www.youtube.com/watch?v=-DjEE6jLe4Y Depreciation https://www.youtube.com/watch?v=6SY8s1_OEro&t=24s Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Free Cash Flow: How to Interpret It and Use It In a Valuation
 
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You'll learn what "Free Cash Flow" (FCF) means, why it's such an important metric when analyzing and valuing companies. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also learn how to interpret positive vs. negative FCF, and what different numbers over time mean -- using a comparison between Wal-Mart, Amazon, and Salesforce as our example. Table of Contents: 0:54 What Free Cash Flow (FCF) is and Why It's Important 2:26 What Positive FCF Tells You, and What to Do With It 3:56 What Negative FCF Tells You, and What to Do With It 4:38 Why You Exclude Most Investing and Financing Activities in the FCF Calculation 7:55 How to Use and Interpret FCF When Analyzing Companies 11:58 Wal-Mart vs. Amazon vs. Salesforce: Free Cash Flow Across Sectors 19:33 Recap and Summary What is Free Cash Flow? Normally it's defined as Cash Flow from Operations minus Capital Expenditures. Tells you the company's DISCRETIONARY cash flow - after paying for expenses and working capital requirements like inventory and capital expenditures, how much cash flow can it put to use for other purposes? If the company generates a lot of Free Cash Flow, it has many options: hire more employees, spend more on working capital, invest in CapEx, invest in other securities, repay debt, issue dividends or repurchase shares, or even acquire other companies. If FCF is negative, you need to dig in and see if it's a one-time issue or recurring problem, and then figure out why: Are sales declining? Are expenses too high? Is the company spending too much on CapEx? If FCF is consistently negative, the company might have to raise debt or equity eventually, or it might have to restructure itself or cut costs in some other way. Why Do You Exclude Most Investing and Financing Activities Other Than CapEx? Because all other activities are, for the most part, "optional" and non-recurring. A normal company does not NEED to buy stocks or issue dividends or repurchase shares... those are all optional uses of cash. All it NEEDS to do to keep its business running is sell products to customers, pay for expenses, and keep investing in longer-term assets such as buildings and equipment (PP&E). Debt repayment and interest expense are "borderline" because some variations of Free Cash Flow will include them, others will exclude them, and some will include interest expense but not debt principal repayment. How Do You Use Free Cash Flow? It's used in a DCF (or at least, a variation of it) to value a company; it's also used in a leveraged buyout (LBO) model to determine how much debt a company can repay. And you can calculate it on a standalone basis for use when comparing different companies. The key is to DIG IN and see why Free Cash Flow is changing the way it is - Organic sales growth? Artificial cost-cutting? Accounting gimmicks? Different working capital policies? IDEALLY, FCF will be increasing because of higher units sales and/or higher market share, and/or higher margins due to economies of scale. Less Good: FCF is growing due to cost-cutting, CapEx slashing, or FCF is growing in spite of falling sales and profits... because of a company playing games with Working Capital, non-core activities, or CapEx spending. Wal-Mart vs. Amazon vs. Salesforce Comparison Main takeaway here is that Wal-Mart's FCF is all over the place, but Cash Flow from Operations is MOSTLY growing, so that appears to be driven by the also growing organic sales. The company is doing some odd things with CapEx and Working Capital, which led to fluctuations in FCF - not exactly "bad" or "good," just neutral and requires more research. With Amazon, they've increased CapEx spending massively in the past 2 years so that has pushed down CapEx. CFO is growing, driven by organic revenue growth (no "games" with Working Capital), but it's very difficult to assess whether all that CapEx spending will pay off in the long-term. With Salesforce, FCF is definitely growing organically (Revenue growth leads directly to CFO growth, and CapEx varies a bit but not as much as with Amazon), but the company is also spending a ton on acquisitions... will it continue? If CapEx as a % of revenue stays low, it will most likely continue to spend on acquisitions - unlikely to issue dividends, repurchase shares, etc. since it's a growth company. Further Resources http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Free-Cash-Flow.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Walmart-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Amazon-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Salesforce-Financial-Statements.pdf
Project Cash Flows | Corporate Finance | CPA Exam BEC | CMA Exam | Chp 10 p 1
 
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A relevant cash flow for a project is a change in the firm's overall future cash flow that comes about as a direct consequence of the decision to take that project. Because the relevant cash flows are defined in terms of changes in, or increments to, the firm's existing cash flow, they are called the incremental cash flows associated with the project. The concept of incremental cash flow is central to our analysis, so we will state a general definition and refer back to it as needed: The incremental cash flows for project evaluation consist of any and all changes in the firm's future cash flows that are a direct consequence of taking the project. THE STAND-ALONE PRINCIPLE In practice, it would be cumbersome to actually calculate the future total cash flows to the firm with and without a project, especially for a large firm. Fortunately, it is not really necessary to do so. Once we identify the effect of undertaking the proposed project on the firm's cash flows, we need focus only on the project's resulting incremental cash flows. This is called the stand-alone principle. What the stand-alone principle says is that once we have determined the incremental cash flows from undertaking a project, we can view that project as a kind of “minifirm” with its own future revenues and costs, its own assets, and, of course, its own cash flows. We will then be primarily interested in comparing the cash flows from this minifirm to the cost of acquiring it. An important consequence of this approach is that we will be evaluating the proposed project purely on its own merits, in isolation from any other activities or projects.
Cash Flow Estimation Part 1
 
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Cash Flow Estimation Financial Management Lecture by Arif Irfanullah www.arifirfanullah.com
Views: 31748 IFT
The 4 Most Important Financial Metrics
 
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Financial metrics are the key numbers that you can focus on in financial statements. There are three financial statements, the balance sheet, the income statement and the cash flow that we like to look at to find important metrics. http://bit.ly/2xOCmRl Were going to look at some of the most important financial metrics that you as investors can use to evaluate a company. The first important number we look at on the balance sheet is liquidity. Can the company you’re looking at really cover everything that they need to cover in the next year? Or have they somehow overloaded themselves with short term debt and obligations that they could really run out of cash in the next year? In order to evaluate this, we want to look at the current ratio. Essentially it is a measure of working capital. It compares the current assets, which are assets that can be turned into cash in the next year, with current liabilities, which are obligations that have to be paid in the next year. What you want to look for when evaluating a company is a 2:1 ratio of liquidity to debt. Some companies are very well run that have a lower ratios than that, because they are controlling their cash very well, or they are in an industry that isn’t growing fast so they don’t need as much liquidity. These companies work their capital down so they don’t need as much cash on hand all the time and they can give that money to their shareholders. You will know that these companies are very well run because, they are really big companies. Most companies, particularly smaller companies need at least a 2:1 ratio between current assets and current liabilities. That’s a great measure of liquidity. We call that the liquidity metric. To sign-up for my Transformational Investing Webinar, visit: http://bit.ly/2xOCmRl _____________ Learn more: Subscribe to my channel for free stuff, tips and more! YouTube: http://budurl.com/kacp Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: + PhilTownRule1Investing Pinterest: http://www.pinterest.com/rule1investing LinkedIn: https://www.linkedin.com/company/rule... Blog: http://budurl.com/9elj Podcast: http://bit.ly/1KYuWb4 _____________ finance metrics, key metrics, financial ratios, learn to invest, investing, trading, free cash flow, growth rate, key financial metrics, key financial ratios, top financial metrics,
How to value a company using discounted cash flow (DCF) - MoneyWeek Investment Tutorials
 
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Every investor should have a basic grasp of the discounted cash flow (DCF) technique. Here, Tim Bennett introduces the concept, and explains how it can be applied to valuing a company.
Views: 530828 MoneyWeek
Cash Flow Analysis in Loan Proposal
 
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Install our android app CARAJACLASSES to view lectures direct in your mobile - https://bit.ly/2S1oPM6 Join my Whatsapp Broadcast / Group to receive daily lectures on similar topics through this Whatsapp direct link https://wa.me/917736022001 by simply messaging YOUTUBE LECTURES Did you liked this video lecture? Then please check out the complete course related to this lecture, Banking Credit Analysis Process with 240+ Lectures, 17+ hours content available at discounted price (10% off)with life time validity and certificate of completion. Enrollment Link For Students Outside India: https://bit.ly/2wcpBMk Enrollment Link For Students From India: https://www.instamojo.com/caraja/banking-credit-analysis-process/?discount=inybcap68 Our website link : https://www.carajaclasses.com ---------------------------------------------------------------------------------------------------------------- BEST FOR CREDIT ANALYSIS THIS IS BEST LECTURE EXPLAINED IN SIMPLE METHOD WITH EXAMPLES FOR CREDIT PROFESSIONAL.Also it would def help on the job purpose as well.Would def recommend ------------------------------------------------------------------------------------------------------------------ Credit Analysis is the core process adopted by any Bank to understand, evaluate and appreciate about the Customers Identity, Integrity, Financial Position, - Repayment Capacity, Etc. Every Banker should be through with Credit Analysis Process because day in day out they have to deal with new customers and before sanctioning any new loans to them, Banker should have made detailed study of their customers. No Banker can raise to top unless he becomes conversant with Credit Analysis Process. Bank would generally throw employees on to the job before they get opportunity to be trained. This is with more specific reference to Credit Analysis where Bankers should under detailed learning process, else their mistakes in the process will be Very Costly beyond their manageable Position. Hence, this course will provide platform to Bankers to have fall back reference on the Critical Aspects of Credit Analysis Process, Banking/ Management Consultants can also use this course for the equipping themselves to the expectations of the Bankers while handling Credit Proposals. This Course has been Structured in self paced Learning Style. Learners can Learn Credit Analysis process at their own time, Convenience and place. Materials used in this Course will enable the participants to understand credit Analysis Process with almost Clarity. • Category: Business What's in the Course? 1. Over 171 lectures and 11 hours of content! 2. By taking this Course you will Understand, What is Credit Analysis 3. By taking this Course you will Understand, What is Working Capital Cycle 4. By taking this Course you will Understand, What is Project Financing 5. By taking this Course you will Understand, Detailed Process of Credit Analysis Course Requirements: 1. No prior knowledge is required for taking this course. 2. Students need PC / Laptop / Tab / Mobile (supporting Android / iOS) to view this course Who Should Attend? 1. Bankers 2. Consultants(Management/Banking/Finance) 3. Finance Managers 4. Entrepreneurs looking for Raising Funds 5. Department Heads 6. Chartered Accountants
Views: 3514 CARAJACLASSES
What is Free Cash Flow?
 
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Free cash flow is possibly the most critical number you can look at as a Rule #1 investor, yet it's not a number that's found very easily. In this video, I discuss how you can calculate free cash flow using the company's cash flow statement. http://bit.ly/1Zh9T8h To sign-up for my Transformational Investing Webinar, click the link above. Think you have enough money saved for retirement? Learn more: http://bit.ly/1PTafj1 Don't forget to subscribe to my channel here: http://ow.ly/RNAnK _____________ For more great Rule #1 content and training: Podcast: http://bit.ly/1N3FZ07 Blog: http://bit.ly/1OXZcIn Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: +PhilTownRule1Investing Pinterest: https://www.pinterest.com/rule1investing/
Cash Flow Statement - Beginners guide
 
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Explanation of the cash flow statement - its components, what they represent, and basic ways to analyze the information. This series was initially developed to train credit and collection professionals. Free eBook available on our web site of the 5 part series Introduction to Financial Statement Analysis from commercial collection agency The Kaplan Group www.kaplancollectionagency.com.
Views: 265495 The Kaplan Group
Cash Flow Analysis | Introduction to Corporate Finance| CPA Exam BEC | CMA Exam | Chp 3 p 1
 
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At the most fundamental level, firms do two different things: They generate cash and they spend it. Cash is generated by selling a product, an asset, or a security. Selling a security involves either borrowing or selling an equity interest (shares of stock) in the firm. Cash is spent in paying for materials and labor to produce a product and in purchasing assets. Payments to creditors and owners also require the spending of cash. Cash flow from assets = Cash flow to creditors + Cash flow to owners This cash flow identity summarizes the total cash result of all transactions a firm engages in during the year.
How to Read a Cash Flow Statement - With Free Cash flow Formula
 
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Here is a pdf version of the NKE Statements I Used https://goo.gl/2h6rQG How to read cash flow statement? The Cash Flow Statement is a crucial financial statement to understand. We walk through the cash flow statement in this video. ★☆★ Subscribe: ★☆★ https://goo.gl/qkRHDf Investing Basics Playlist https://goo.gl/ky7CJq Investing Books I like: The Intelligent Investor - https://amzn.to/2PVhfEL Common Stocks & Uncommon Profits - https://amzn.to/2DAV8h9 Understanding Options - https://amzn.to/2T9gFSp Little Book of Common Sense Investing - https://amzn.to/2DfFGG2 How to Value Exchange-Traded Funds - https://amzn.to/2PWSkRg A Great Book on Building Wealth - https://amzn.to/2T8AKZ1 Dale Carnegie - https://amzn.to/2DDAk8w Effective Speaking - https://amzn.to/2DBncAT Equipment I Use: Microphone - https://amzn.to/2T7JxL6 Video Editing Software - https://amzn.to/2RQM1vE Thumbnail Editing Software - https://amzn.to/2qIUAgP Laptop - https://amzn.to/2T4xA8Z DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment. #LearnToInvest #StocksToWatch #StockMarket
Views: 27495 Learn to Invest
Cash Flow Statement  ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts
 
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This video tell us about two things 1) What is Cash Flow Statement? 2) How to prepare it? This video on Cash Flow Statement is useful for Class 11th, class 12th, B.Com, BBA, CA, CS, Accountancy Students, Financial Management students etc. And just because this is an important topic, you should understand it properly. In this Cash Flow Statement, i have discussed Indirect Method. It is based on AS 3.
Views: 176819 Lavish Gupta
Capital Budgeting Cash Flow chapter 11
 
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Capital Budgeting Cash Flow chapter 11
Views: 22962 Michael Nugent
Statement of Cash Flows Explained
 
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The Statement of Cash Flows is explained using the Indirect and Direct methods.
Views: 669572 Ryan Teeter
What is a cash flow statement? - MoneyWeek Investment Tutorials
 
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Often hidden in a company’s accounts, a cash flow statement is a vital document if you're looking to invest in a company. Tim Bennett explains what it is, and what it can reveal to investors. Visit http://moneyweek.com/youtube for extra videos not found on YouTube. MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors. In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter. Related links: - The six numbers every investor should know... http://moneyweek.com/videos/video-tutorial-six-numbers-every-investor-should-know-13201/ - What is profit? http://moneyweek.com/videos/beginners-guide-to-investing-what-is-profit-04914/ - MoneyWeek's favourite valuation ratio: https://www.youtube.com/watch?v=FwxJYH5DcAI - What is a balance sheet? http://moneyweek.com/videos/beginners-guide-to-investing-what-is-a-balance-sheet-11514/ - What is enterprise value? https://www.youtube.com/watch?v=Au15IrXW4iU - How to value a company using net assets https://www.youtube.com/watch?v=rV68zoBKTJE - How to value a company using multiples https://www.youtube.com/watch?v=g4_eKPJmy1E
Views: 446245 MoneyWeek
Statement of Cash Flows example: Walmart (case study)
 
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How to read a statement of cash flows? I think the best way to learn how to read a cash flow statement is to go through as many real-life examples as you can! I have done a previous video about the cash flow statement of oil and gas company Shell, and that of electric car company Tesla, both of which I recommend you to watch. Let me show you in this video another example of how a cash flow statement works, by reviewing the cash flow statement for Walmart (NYSE: WMT). I don’t own shares in Walmart, this video is purely for educational purposes. One of Walmart’s key objectives is a financial one: to deliver results and operate with discipline. In the “Walmart by the numbers” one page summary in the front of the annual report, a lot of emphasis is put on revenue performance (which is on the income statement, which I will talk about in an upcoming video), as well as on cash flow performance, more specifically the record operating cash flow and the 44th year of annual dividend increases to shareholders. This video will show you where and how you can get the picture of cash flow from Walmart’s financial statements. Walmart generated a very large cash flow from operating activities. Walmart returned much of that cash flow to shareholders through both share repurchases and dividends, while at the same time investing in the future of the business through CapEx and acquisitions. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Discounted Cash Flow (Part 1 of 2): Valuation
 
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In this vide, I discuss the Discounted Cash Flow, or DCF, Model as an approach to estimating the intrinsic value of a company's stock. I review the theoretical motivation behind the model and discuss the model's required inputs, assumptions, and forecasts. I walk through building a basic implementation of the DCF model in Microsoft Excel. Part 2 of the video (http://youtu.be/ijpPg8eAhv4) shows the application of the basic Excel DCF model to a real firm, including illustrations of where to find data to support the inputs, assumptions, and forecasts. The music is "Gnomone a Piacere" by MAT64 (http://www.mat64.org/).
Views: 186041 Jason Greene
Cash Flow Statement with Adjustments - solved problem :-by kauserwise
 
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Here is the video about Cash Flow statement in Cost and Management accounting , and in this video we discussed Funds from operation,cash from operation, Funds flow statement with sample problem in simple manner. Hope this will help you to get the subject knowledge at the end. Thanks and All the best. To watch more tutorials pls visit: www.youtube.com/c/kauserwise * Financial Accounts * Corporate accounts * Cost and Management accounts * Operations Research Playlists: For Financial accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnojfVAucCUHGmcAay_1ov46 For Cost and Management accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnpgUjlVR-znIRMFVF0A_aaA For Corporate accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnorJc6lonRWP4b39sZgUEhx For Operations Research - https://www.youtube.com/playlist?list=PLabr9RWfBcnoLyXr4Y7MzmHSu3bDjLvhu
Views: 657406 Kauser Wise
Discounted Cash Flow (DCF) Model
 
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A Discounted Cash Flow (DCF) Model is used to value a business, project, or investment. It helps determine how much to pay for an acquisition and assess the impact of a strategic initiative.
Cash Flows for a Financial Analysis
 
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This video is a part of Conservation Strategy Fund's collection of environmental economic lessons and was made possible thanks to the support of the Gordon and Betty Moore Foundation and the Marcia Brady Tucker Foundation. This series is for individuals who want to learn - or review - the basic economics of conservation. In this video, you will learn how to use a spreadsheet for conducting the net present value of a financial cost-benefit analysis. To follow this series, subscribe to our YouTube channel. For more information on these and other trainings from Conservation Strategy Fund, check out: http://www.conservation-strategy.org/ For copyright information on all sound effects, see http://www.conservation-strategy.org/en/page/csf-economic-video-lessons-sound-references
Cash Flow Analysis - Nerd's Cash Flow Projections For Small Business
 
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Visit the new NerdEnterprises.com Subscription Options: https://nerdenterprises.com/services/subscription-based-training/ One to One Training: https://nerdenterprises.com/services/one-to-one-training/ Get templates: https://nerdenterprises.com/resources-page/templates/
Views: 26352 Nerd Enterprises, Inc.
Financial Modeling Quick Lesson: Cash Flow Statement (Part 1)
 
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Learn the building blocks of a financial model. In this video, we'll build a cash flow statement given an income statement and balance sheet in Excel. To download the Excel template that goes with this video, go to http://www.wallstreetprep.com/blog/financial-modeling-quick-lesson-cash-flow-statement-part-1/ The accounting here is a simplified presentation of how the three major financial statements are inter-related and lays the foundation of financial statement models in investment banking. Many accounting questions that we see time and again in finance interviews are designed to test the understanding explained in this exercise.
Views: 398764 Wall Street Prep
CFA Level I - Understanding Cash Flow Statement- Part I
 
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We offer the most comprehensive and easy to understand video lectures for CFA and FRM Programs. To know more about our video lecture series, visit us at www.fintreeindia.com This Video lecture was recorded by Mr. Utkarsh Jain, during his live CFA Level I Classes in Pune (India). This video lecture covers following key area's: 1. cash flows from operating, investing, and financing activities and classify cash flow items as relating to one of those three categories given a description of the items. 2. How non-cash investing and financing activities are reported. 3. cash flow statements prepared under International Financial Reporting Standards (IFRS) and U.S. generally accepted accounting principles (U.S. GAAP). 4. between the direct and indirect methods of presenting cash from operating activities and describe arguments in favor of each method. 5. how the cash flow statement is linked to the income statement and the balance sheet. 6.The steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data. 7.cash flows from the indirect to the direct method. 8. Analyze and interpret both reported and common-size cash flow statements. 9. Interpret free cash flow to the firm, free cash flow to equity, and performance and coverage cash flow ratios. #CFA #FinTree
How to Create a Cash Flow Forecast using Microsoft Excel - Basic Cashflow Forecast
 
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Create a basic cash flow forecast using excel. If you need help get in contact. www.bpfs-online.com Support this channel https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=FHGCUQ8GU9VB6 Take our Online Sage training course http://www.bpfs-online.com/p/online-sage-training-course.html Create a bookkeeping spreadsheet using Microsoft Excel http://youtu.be/LlWADbkGdac Sage Accounts Bookkeeping Tutorial/Training Learn more at www.bpfs-online.com
Views: 649739 BookkeepingMaster
AS 3 : Cash Flow Statements (Short & Simple by Ruchi Thakkkar)
 
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Short & Simple tutorial useful for CA, CS, ICWA, MBA, MCOM & all finance related courses. link to sum solving approach in Cash Flow Statement: https://youtu.be/ebxzHsfVs_s https://youtu.be/uw8nx6YgUHE
Views: 165980 Ruchi2Learn
Cash Flow Statement Tutorial in 3 Easy Steps: Understanding Cash Flow Statement Analysis
 
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Clicked here http://www.youtube.com/watch?v=SzMbBOtOuJ4 and OMG wow! I'm SHOCKED how easy.. Whether or not you have taken accounting, in all likelihood you know about the ideas of income and profit. Income is just what amount you secure that goes precisely to your bank balance, whether from a payment or organization or both. http://www.youtube.com/watch?v=SzMbBOtOuJ4 Then again, offhandedly put, profit is more exact in that it is just how much you generate from an enterprise... it is your revenue less your costs and expenses. For this reason profit is now and again termed as net income. http://mbabullshit.com/blog/2011/08/06/cash-flow-understanding-cash-flow-statement-tutorial/ Notwithstanding, you ought to be attentive when applying the concept of profit or net income. It signifies you earn, however it will not essentially represent that you receive any real cash. What are the reasons? Just for instance you offer a watch to an important person. He gets the watch from your shop and he boasts to pay you $100 cash after 1 month. Do you record on your books that the sale materialized at present or one month subsequently? Based on generally accepted accounting principles (GAAP), you would need to record that the sale was made at present. Definitely not next month. As a result, you likewise can already write down your profit presently... whether or not you could not receive any actual cash as of yet. This kind of profit is labelled as "accrued" income. You gain income even without the need for recovering any cash to date. This is where the distinction concerning a Net Income Statement and a Free Cash Flow Statement comes in. A Net Income Statement indicates net income, subject to cash income and accrued income along with both cash expenses together with accrued expenses. A Free Cash Flow Statement reveals free cash flow based on all the actual cash which the company earns, less all the cash payments the business enterprise in truth makes. A Free Cash Flow Statement doesn't give thought to accrued income, and it will not think of accrued expenses which have certainly not been paid for in cash. Also, a Net Income Statement will not consider cash payments for capital for the company's building, property and equipment, but the Free Cash Flow Statement displays these transactions provided these payments were already done in the form of cash. It can be told that the Net Income Statement and the Cash Flow Statement symbolize 2 diverse philosophies. Thus who utilizes which ideology? Essentially, accountants prefer to utilize the income statement in reporting business enterprise proceeds. The government typically looks at your income statement as well when it wants to determine the amount of taxes you would need to pay. On the other hand, modern financial managers regularly desire to look at the Free Cash Flow Statement as a factual measure as to "how efficiently the firm is doing", believing that income isn't really income until you actually generate cash.
Views: 355241 MBAbullshitDotCom
#2 Cash Flow Statement ~ Treatment of Tax & Dividend [Problem & Solution]
 
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#CashFlowStatement #Accounting Explained the procedure to solve a question though Indirect Method of Accounting Standard-3. Further discussed the procedure to show Reserves, Provision for Taxation and Proposed Dividend Separately. An old format of of Balance Sheet is used only for explaining the treatment and concepts. In future videos students will get solution based on new format of Balance Sheet. Students may also watch following lectures : 1. Cash Flow Statement (Concept and Procedure) Part-1 : https://www.youtube.com/watch?v=pISQMexnmew 2. Concept behind formation of a Formula (Ratio Analysis) : https://www.youtube.com/watch?v=76gMXQBnbps 3. Balance Sheet of a Company : https://www.youtube.com/watch?v=IuExxeB4XNk 4. Income Statement and its utility || Ratio Analysis https://www.youtube.com/watch?v=7-y9ZCbMUlo Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing
Views: 194052 CA. Naresh Aggarwal
Cash flow statement - Class 12 | B.com | CA | CS | Mba | Bba | M.com
 
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HERE IS THE LECTURE BY SIR ASHISH ON Cash flow statement - Accountancy and Finance Class 11th | Class 12th | Mba | Bba | M.com | B.com watch video how to solve cash flow: https://www.youtube.com/watch?v=rNdHEX5W8fs watch video for objectives of cash flow: https://www.youtube.com/watch?v=Hlx33jT-bXM&t=55s Watch Video for What is depreciation : https://www.youtube.com/watch?v=1vkARhA4Oe4 FOR NOTES AN PREVIOUS YEARS EXAM PAPERS DOWNLOAD : http://www.examhelplogger.com/difference-between-micro-macro-economics-notes-mba-bba-b-com-cbse-class-12th/ JOIN US ON: FACEBOOK: https://www.facebook.com/examhelplogr/ TWITTER: https://twitter.com/examhelplogger GOOGLE PLUS: https://plus.google.com/u/0/b/111629836618296120046/111629836618296120046 music credit: http://www.bensound.com/
Views: 165614 examhelplogger.com
How to read a cash flow statement: Alphabet Inc case study
 
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How to read and analyze a cash flow statement of a company? This cash flow statement tutorial is a companion video to “How to read an annual report” and “How to read an income statement”, and covers the 2017 cash flow statement of Alphabet Inc. It is advisable to watch the income statement analysis video first, as we will build on this income statement analysis when reviewing the cash flow statement. Related videos on Alphabet Inc financial statements How to read an income statement: Alphabet Inc case study https://www.youtube.com/watch?v=ToE-oggQiqQ&list=PLKbmcnUUQMln5eTjJstYPUNrfPH8b7l60&index=1 How to read a balance sheet: Alphabet Inc case study https://www.youtube.com/watch?v=XKSOswE-_6c&list=PLKbmcnUUQMln5eTjJstYPUNrfPH8b7l60&index=3 Balance sheet comparison Alphabet Inc (Google) vs Facebook https://www.youtube.com/watch?v=ya7rRZJCLEc&index=4&list=PLKbmcnUUQMln5eTjJstYPUNrfPH8b7l60 We perform a high-level cash flow statement analysis of Alphabet Inc, by focusing on five areas: cash balance change over three years, cash balance walk for 2017, and a review of CFOA, CFIA and CFFA. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Cash Flow Analysis - Understanding The Statement Of Cash Flows Part 1
 
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Visit the new NerdEnterprises.com Subscription Options: https://nerdenterprises.com/services/subscription-based-training/ One to One Training: https://nerdenterprises.com/services/one-to-one-training/ Get templates: https://nerdenterprises.com/resources-page/templates/
Views: 46637 Nerd Enterprises, Inc.
Cash Flow Statement tutorial Tesla 2016 to 2018
 
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Welcome to this cash flow statement tutorial showing how to read a cash flow statement using the 2016 through 2018 actual numbers from Tesla. A disclaimer before we begin: I don’t hold any position in shares in Tesla, nor do I own a Tesla car. Let’s start with the purpose of the cash flow statement. What a company shows by publishing a cash flow statement in an annual report, is how they got from the cash balance on January 1st (on the previous balance sheet), to the cash balance on December 31st (the latest balance sheet). The increase or decrease between the January 1st and December 31st cash balance is called cash flow. It consists of three categories: Cash From Operating Activities (basically the incoming cash from customers minus outgoing payments to employees, suppliers and governments), Cash From Investing Activities (mostly outflows due to capital expenditures and acquisitions), Cash From Financing Activities (cash inflows or cash outflows due to changes in borrowings and issuing equity), or terms with slight variations on that wording. Time to look at the relationship between cash balance and cash flow from the start of 2016 to the end of 2018. We will put 2016 on the right, and 2018 on the left. Tesla started 2016 with $1.2 billion in cash, and ended the year with $3.8 billion. That cash balance further increased to $4 billion by the end of 2017, and $4.3 billion by the end of 2018. What were the characteristics of the cash flow in each of the years, and the “themes” we can identify from these numbers. For each of the three years, the ending cash balance is higher than the opening cash balance, but the extent and driver for the increase varies. 2016 had a slight cash outflow from operating activities, $1.1 billion outflow from investing activities, and a significant cash raising of $3.8 billion in financing activities. 2017 had another slight outflow from operating activities, record $4.2 billion of cash outflow from investing activities, and record $4.4 billion in cash raising in financing activities. 2018 was the first year with significant cash inflow from operating activities of $2.1 billion, a further $2.3 billion of cash outflow from investing activities, and a shrinking of the cash inflow from financing activities to $500 million. We could call 2016 the year of “pre-funding for current and future investments”, 2017 the balancing year of investing outflows equaling cash raising inflows, and 2018 the year where Tesla became nearly self-funding (cash inflow from operations almost equal to the cash outflow from investing). Philip de Vroe (The Finance Storyteller) aims to make strategy, #finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better #investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Financial Analysis - Basic Cash Flow Model with Free Excel Template
 
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A free video tutorial on how to create a cash flow model for your forecast, business plan or budget. To download the template go to: http://www.challengejp.com/excel-tutorials.php#cfmodel To watch tutorial on extended version of the model with Balance Sheet, P&L, Debt and DCF calculation go to: https://www.youtube.com/watch?v=MZP4xHw5yzU If you need more information or have any questions please contact me via http://www.challengejp.com/contact
Views: 8501 Jacek Polewski
Financial Modelling- Vertical Analysis of Cash Flow Statement- TVS Motors
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video was recorded during a one of the Financial Modelling Classes in Pune by Mr. Utkarsh Jain.
Cash Flow Statement(AS 3) By CA/CMA santosh kumar(FREE DOWNLOAD PDF)
 
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DOWNLOAD CHAPTER PDF:- http://pdf.conceptonlineclasses.com/student/NT This is only a demo class. classes are available for CA/CMA/CS/B.COM( All universities), 11th, 12th. Classes are available in Pen drive mode. Visit https://www.conceptonlineclasses.com/ for full lectures Click on the below link join our different courses WhatsApp groups:- http://whatsapp.conceptonlineclasses.com/ For any enquiry call us @ 9315479626 Also join our Telegram channel below link :- https://t.me/SantoshKumarCOC For purchase related enquiry call us/whatsapp :- 7303445575,9999631597,8448322142 Land line no- 0120-4225002/3/4 Like and follow us on facebook- https://www.facebook.com/pages/category/Education/Concept-Online-Classes-107662229916338/
Views: 168003 santosh kumar
Fundamental Analysis : Cash Flow Statement - 1 by CA Ravinder Vats
 
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👍👍Like,Share📱& Subscribe Don't forget to click the bell icon🔔🔔🔔🔔🔔 Telegram Channel- 🔗🔗http://t.me/caravindervats ✔️✅✔️
Views: 6990 Ravinder Vats
Learn to prepare Cash Flow Statement in 7 minutes
 
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This video explains as to how to prepare a cash flow statement
Views: 97974 Ns Toor
Free Cash Flow Conversion Analysis
 
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In this tutorial, you’ll learn how to use Free Cash Flow (FCF) Conversion Analysis to determine how “reliable” a company’s EBITDA is, and how much EBITDA actually translates into cash flow from business operations; you’ll also see a few examples of how to use this analysis in valuation and leveraged buyout scenarios. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:33 Problems with EBITDA 4:12 FCF Conversion Calculation – Example 8:07 How to Use and Interpret FCF Conversion Analysis 13:38 Recap and Summary What’s the Problem with EBITDA? While EBITDA – Earnings Before Interest, Taxes, Depreciation & Amortization – is a common metric in valuations and leveraged buyout scenarios, it is not always accurate. It’s supposed to be a proxy for a company’s Cash Flow from Operations, because just like with CFO you add back D&A and ignore CapEx. So EBITDA, theoretically, should be close to the company’s recurring cash flow generated by its core business operations. However, EBITDA also ignores: -Interest and taxes, both of which could be huge, and both of which ARE reflected in Cash Flow from Operations. -The Change in Working Capital, which could also be very significant, and which is also reflected in Cash Flow from Operations. -CapEx – Yes, Cash Flow from Operations also ignores CapEx, but that practice makes both of these metrics less reliable indicators of a company’s discretionary cash flow and ability to repay debt principal. Solution: FCF Conversion Analysis To tell how reliably a company turns EBITDA into real cash flow, you can compare its Free Cash Flow – defined as CFO minus CapEx – to its EBITDA, and see what percentage its FCF represents. For example, for Foot Locker the percentages range from 30% to over 60%, indicating that the company is turning 30-60%+ of its EBITDA into Free Cash Flow each year. In theory, the higher the FCF Conversion, the better, because it means the company is able to generate more cash flow from its business. However, it also depends on the source of that FCF Conversion – is it driven by policies where customers pay upfront in cash before products are even delivered? If so, that’s very positive because it means the company gets more cash earlier on, on a consistent basis. On the other hand, if it’s driven by one-time tax benefits, non-recurring items, or strange Working Capital treatment, none of those is a positive sign. You can use FCF Conversion to compare peer companies and see which one(s) might be deserving of a higher valuation multiple. For example, HomeAway has a much higher FCF Conversion (around 100%) than many of its peer companies such as PriceLine and TripAdvisor. So you might argue that it should be valued at a higher multiple, even if its growth rates and margins are similar to those of other companies. You can also use FCF Conversion to develop or support your investment thesis in a leveraged buyout or growth equity candidate. For example, we use it in our 7 Days Inn case study to show how the company’s switch to a franchised business model will make it a less capital-intensive business and improve its FCF generation capabilities. Finally, you can use FCF Conversion to determine how much debt a company can take on, and whether that figure should exceed or be below the median figure for peer companies. For example, if the peer companies have around 4x Debt / EBITDA but only ~50% FCF Conversion, but the company you’re analyzing has 75% FCF Conversion, perhaps it can afford to take on more debt – maybe up to 4.5x Debt / EBITDA or even 5x Debt / EBITDA. FCF Conversion is by no means a perfect analysis, but it is a useful tool to assess a company’s ability to generate cash flow and to see how reliable credit-related stats like Debt / EBITDA and EBITDA / Interest really are. RESOURCES: http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-14-Free-Cash-Flow-Conversion-Slides.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-14-Free-Cash-Flow-Conversion.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-14-HomeAway-FCF-Conversion.pdf
Discounted Cash Flow (DCF) Formula - Tutorial | Corporate Finance Institute
 
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Discounted Cash Flow (DCF) Formula - Tutorial | Corporate FInance Institute This tutorial is from our course "Introduction to Corporate Finance." Enroll in the full course to upgrade your skills: https://courses.corporatefinanceinstitute.com/courses/introduction-to-corporate-finance -- FREE COURSES & CERTIFICATES -- Enroll in our FREE online courses and earn industry-recognized certificates to advance your career: ► Introduction to Corporate Finance: https://courses.corporatefinanceinstitute.com/courses/introduction-to-corporate-finance ► Excel Crash Course: https://courses.corporatefinanceinstitute.com/courses/free-excel-crash-course-for-finance ► Accounting Fundamentals: https://courses.corporatefinanceinstitute.com/courses/learn-accounting-fundamentals-corporate-finance ► Reading Financial Statements: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course ► Fixed Income Fundamentals: https://courses.corporatefinanceinstitute.com/courses/introduction-to-fixed-income -- ABOUT CORPORATE FINANCE INSTITUTE -- CFI is a leading global provider of online financial modeling and valuation courses for financial analysts. Our programs and certifications have been delivered to thousands of individuals at the top universities, investment banks, accounting firms and operating companies in the world. By taking our courses you can expect to learn industry-leading best practices from professional Wall Street trainers. Our courses are extremely practical with step-by-step instructions to help you become a first class financial analyst. Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections -- JOIN US ON SOCIAL MEDIA -- LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi- Facebook: https://www.facebook.com/corporatefinanceinstitute.cfi Instagram: https://www.instagram.com/corporatefinanceinstitute Google+: https://plus.google.com/+Corporatefinanceinstitute-CFI YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
The Art of Startup Finance: Financial Processes - Your Cash Flow
 
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Bill Reichert explains that your cash flow statement shows where your cash is coming from and where it is going. Sometimes known as “sources and uses of funds,” this financial report is an important complement to your income statement and balance sheet. Investors want to see that you know the difference between your net income and your net cash flow, and that you understand how your business uses cash. THIS VIDEO CAN HELP ANSWER: Do I understand the difference between cash flow and net income? How do I stay on top of my account receivables? What are the best ways to manage our cash flow? Where does cash flow fit into my balance sheet? ABOUT THE KAUFFMAN FOUNDERS SCHOOL Visit the website: [http://bit.ly/1EW2br7] The Kauffman Founders School presents a powerful curriculum for entrepreneurs who wish to learn anywhere, anytime. The online education platform features experts presenting lectures in series modules designed to give Founders a rich learning experience, while also engaging them in lessons that will make a difference in their business today, tomorrow, and in the future. The Kauffman Founders School series modules include Powerful Presentations, Intellectual Property, Founder's Dilemmas, Entrepreneurial Selling, Entrepreneurial Marketing, Surviving the Entrepreneurial Life, Startups, and much more. © Ewing Marion Kauffman Foundation.
Cash Flow for Beginners! | Financial Statement Analysis (3/3)
 
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★★Analysis Spreadsheet (It's FREE)★★ https://bit.ly/2unJLmo In the last episode of the Financial Statement Analysis series, I explain how to read a cash flow statement. We start off with explaining the major components of the cash flow statement, before discussing what we look for as investors and what are some positive and negative signs to look out for. Finally I wrap up the series by showing how the 3 statements work together to tell a story about the company and its financial position. ------- YOUNG INVESTORS PODCAST ▶︎ iTunes http://bit.ly/YIPitunes ▶︎ Spotify http://bit.ly/YIPspotify ▶︎ YouTube http://bit.ly/YIPyoutube SUBSCRIBE & Join The Team: https://goo.gl/gvr6PW ------- WANT TO SUPPORT THE CHANNEL? ▶︎https://www.etsy.com/au/shop/HamishHodder ------- WANT SOME READING MATERIAL? ▶︎ https://amzn.to/2qLPmkb (affiliate) [Favourite Investing Book] ▶︎ https://amzn.to/2qJzmPR (affiliate) ▶︎ https://amzn.to/2qIwti9 (affiliate) ------- FOLLOW ME ON INSTAGRAM ▶︎ instagram.com/hamishhodderofficial LIKE ME ON FACEBOOK ▶︎ https://bit.ly/2HXowfm FOLLOW ME ON TWITTER ▶︎ https://twitter.com/hamish_hodder EMAIL ME ▶︎ [email protected] ------- MICROPHONE ▶︎ https://amzn.to/2qJzGOz (affiliate) CAMERA ▶︎ https://amzn.to/2qK9ByJ (affiliate) LIGHTING ▶︎ https://amzn.to/2qIwz9v (affiliate) ------- Disclaimer: The information & opinions in these videos are strictly for educational & entertainment purposes ONLY. None of the opinions discussed should be taken as financial advice as I am NOT a financial advisor. Please do your own research & consult a financial advisor.
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