6 Cash Flow Analysis Extracting Cash Flow series
- Slides: 22
6. Cash Flow Analysis Extracting Cash Flow series from the Business Plan. Profitability calculations over the lifetime of the investment, NPV and IRR 10/2/2020 Cash Flow 1
Using models is like using glasses to see things better! 10/2/2020 Cash Flow 2
Overview n n n 6. 1 Difference between Cash Flow and Operating Statement 6. 2 Cash Flow from Operations 6. 3 Source and Allocation of Funds (optional) 6. 4 Critical Cash Flow Ratios 6. 5 Profitability Measures 6. 6 Graphical Representation 10/2/2020 Cash Flow 3
Difference between Cash Flow and Operating Statement n Op. Statem. : n n n Cash Flow: Issued bills vs Paid bills => debtor & creditor changes Inventory movem. vs Working Capital Depreciation vs Repayments Taxes paid year later Dividend paid year later 10/2/2020 Cash Flow 4
Cash Flow from Operations n n n Operating Surplus Cash Flow before Tax Cash Flow after Tax Net Cash Flow Cash Movements 10/2/2020 Cash Flow 5
Cash Flow from Operations 10/2/2020 Cash Flow 6
10/2/2020 Cash Flow 7
Trying to make your model look nicer? 10/2/2020 Cash Flow 8
Source & Allocation of Funds n Source of funds n n Allocation of Funds n n Profit before Tax + Depreciation + Drawdown Investment + Repayment + Paid Tax & Dividend Changes in Net Current Assets (Cash, Debtors, Stocks, Creditors) 10/2/2020 Cash Flow 9
Source & Allocation of Funds 10/2/2020 Cash Flow 10
10/2/2020 Cash Flow 11
Analysis of Changes in Net Current Assets 10/2/2020 Cash Flow 12
Critical Cash Flow Ratios n n For each year of operation: Debt Service Coverage = Cash Flow after Tax / (Repayment + Interest of Loans) Loan Life Cover Ratio = NPV of Cash Flow after Tax for rest of lifetime / Principal of Loans Both ratios should be > 1. 5 10/2/2020 Cash Flow 13
Cash Flow Ratios 10/2/2020 Cash Flow 14
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Profitability Measures n n n Total Project Cash Flow and Net Cash & Equity Flow Net Present Values and Internal Rate of Return Accumulation of NPV over planning horizon 10/2/2020 Cash Flow 16
Some things come back again and again! 10/2/2020 Cash Flow 17
Total and Net Cash Flow 10/2/2020 Cash Flow 18
Net Present Value and Internal Rate of Return 10/2/2020 Cash Flow 19
NPV accumulated over planning horizon 10/2/2020 Cash Flow 20
Internal Rate of Return 10/2/2020 Cash Flow 21
You will be stuck with this model forever! 10/2/2020 Cash Flow 22
- Extracting data from xml
- Dna extraction from wheat germ
- Cash flow series
- Annual cash flow analysis
- Incremental cash flows
- Cash flow ekonomi teknik
- Cash flow estimation and risk analysis
- Annual cash flow analysis
- Maclaurin series vs taylor series
- Balmer series lyman series
- Serie de taylor
- Maclaurin polynomial
- P series ibm
- Shunt-series feedback
- Series aiding and series opposing
- Sum of infinite series formula
- Cash to cash cycle time
- Cash to cash cycle time
- Cash in cash out example
- Direct labor budget formula
- Paid cash to establish a petty cash fund
- A computerized cash payments system that transfers funds
- Debt capacity