Important of cash flow statement analysis for the comparison of two companies (150 words) write in...

Important of cash flow statement analysis for the comparison of two companies (150 words) write in paragraph

Expert Solution

there is a high importance of analysis of cash flow statement for comparison of two companies because it will be providing analysis about the future projection of both the companies and it will also be ascertaining the growth rate associated with these companies in the long run .it will also be helpful in ascertainment of liquidity ratios along with solvency ratios of both the companies and provide with an idea of investment into better company. it will also be providing an idea of comparison of these companies along with the industry standards in order to arrive which company is performing according to the standards of industries or not.Cash flow statements are generally also reflecting the ratio management on the short term cycle and if the company is having adequate cash that means that the company will be having better liquidity.. Dividend paying capability and reinvestment capabilities of both the companies can also be checked.

jeff jeffy answered 1 year ago

Why is Cash Budget Statement important in a company? (NO PLAGIARISM, MINIMUM 150 WORDS)

What is a cash flow statement and a cash flow analysis? Please provide a visual example.

128). What is Financial statement and cash flow analysis?

write a full paragraph in your own words, at least 150 words about: Energy Flow

Cash Flows are extremely important in finance. Companies try to improve their cash flow by investing...

Cash Flows are extremely important in finance. Companies try to improve their cash flow by investing in projects (capital investments) more so in todays times during this recent crisis for a company being able to maintain their day to day operations. There are three parts of cash flow statements, operating, financing and investing activities. Every business not matter what and who they are are interested in their cash flow for obvious reasons. These numbers are usually forecasted by the company,...

Why are cash flow and cash management so important for companies to be successful? Explain why...

Why are cash flow and cash management so important for companies to be successful? Explain why long-term financing is usually more expensive than short-term financing?

When it comes to the Statement of Cash Flow. Why is it important to identify the...

When it comes to the Statement of Cash Flow. Why is it important to identify the three cash flows (operating, financing & investing) seperately?

compare the ratios of two companies and analyse their performance (150 words) The home depot ...

compare the ratios of two companies and analyse their performance (150 words) The home depot Vs Lowe’s 2013 2012 2013 2012 Liquidity Current ratio 1.34 1.54 1.26 1.28 Quick ratio 0.34 0.34 0.16 0.16 Working capital 3910 5144 2076 2181 Efficiency Operating cycle 86.73 88.14 94 93 DSO 6.81 6.45 N/A N/A DSI 79.92 81.69 94 93 Profitability ROI 16.64 13.55 8.55 ROA 11% 9.5% 6% 10% ROE 25% 21% 14% 11% Solvency Debt ration Interest coverage ratio 0.56...

Estimating firm’s FCF and Cash Flow Statement is important. The increases in cash & equivalents along...

Estimating firm’s FCF and Cash Flow Statement is important. The increases in cash & equivalents along with marketable securities is not equal to retained earnings. In addition, after-tax CFs generated by a firm for its investors from its underlying business activities (FCFs) are not equal to NOPAT, the income generated by the firm for all its investors. Explain the underlying accounting principles that lead to this conclusion. What is net operating working capital? Why does it exclude most short-term investments...

explain Income statement, balance sheet and cash flow . 500 words

Question