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Briefly discuss Sims Metal Management Limited’s net cash flows from operating, investing, and financing activities and...

Briefly discuss Sims Metal Management Limited’s net cash flows from operating, investing, and financing activities and the trends evident over the last three years: 2019, 2018, 2017. Refer to their annual report.

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Expert Solution

The position of Cash flow activities are as follows:

As we can observe in 2018 the cashflow from Operating activities have slightly dropped by 5.37% and a huge Cash flow in investing Activity ie 316%. This implies there are heavy capital investments in this year. There is net cash paid out overall. Thus company must've invested out of its existing resources than opting for external sources.

The impact of investment made in 2018 has given results in 2019 as we has increased Cash flows from Operating activities by 43%. However we have investing and financing outflows of nearly $ 325 million ( 194+131). The investing have marginally reduced but outflow in financing have increased significantly (259%).

ekkarill92 answered 2 years ago
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