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1/16/2012
English For Business
        about



               Cash Flow
                  By :
             Endang sumarni

 1/16/2012
Definition of Cashflow
       Cash flow is the movement of
    cash    into   or   out  of   a
    business, project, or financial
    product.




1/16/2012
Measurement of cash flow can be
  used for calculating other
  parameters that give information
  on a company's value and
  situation.

1/16/2012
Cash flow can e.g. be used for
               calculating parameters:
• to determine a project's rate of return or
  value.
• to determine problems with a business's
  liquidity.
• as an alternative measure of a business's
  profits when it is believed that accrual
  accounting concepts do not represent
  economic realities.

1/16/2012
• cash flow can be used to evaluate the 'quality'
  of income generated by accrual accounting.
  When net income is composed of large non-
  cash items it is considered low quality.
• to evaluate the risks within a financial
  product, e.g. matching cash requirements,
  evaluating default risk, re-investment
  requirements, etc.

1/16/2012
Statement of cash flow in a business's
              financials
        The (total) net cash flow of a company
    over a period (typically a quarter or a full year)
    is equal to the change in cash balance over
    this period: positive if the cash balance
    increases (more cash becomes available),
    negative if the cash balance decreases.




1/16/2012
The total net cash flow is the sum of
 cash flows that are classified in three
                 areas:
• Operational cash flows: Cash received or
  expended as a result of the company's internal
  business activities.
• Investment cash flows: Cash received from the
  sale of long-life assets, or spent on capital
  expenditure (investments, acquisitions and
  long-life assets).

1/16/2012
• Financing cash flows: Cash received from the
   issue of debt and equity, or paid out as
   dividends, share repurchases or debt
   repayments.




1/16/2012
The End
                    Thank you
            Good bye…………..!!!


1/16/2012

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  • 2. English For Business about Cash Flow By : Endang sumarni 1/16/2012
  • 3. Definition of Cashflow Cash flow is the movement of cash into or out of a business, project, or financial product. 1/16/2012
  • 4. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation. 1/16/2012
  • 5. Cash flow can e.g. be used for calculating parameters: • to determine a project's rate of return or value. • to determine problems with a business's liquidity. • as an alternative measure of a business's profits when it is believed that accrual accounting concepts do not represent economic realities. 1/16/2012
  • 6. • cash flow can be used to evaluate the 'quality' of income generated by accrual accounting. When net income is composed of large non- cash items it is considered low quality. • to evaluate the risks within a financial product, e.g. matching cash requirements, evaluating default risk, re-investment requirements, etc. 1/16/2012
  • 7. Statement of cash flow in a business's financials The (total) net cash flow of a company over a period (typically a quarter or a full year) is equal to the change in cash balance over this period: positive if the cash balance increases (more cash becomes available), negative if the cash balance decreases. 1/16/2012
  • 8. The total net cash flow is the sum of cash flows that are classified in three areas: • Operational cash flows: Cash received or expended as a result of the company's internal business activities. • Investment cash flows: Cash received from the sale of long-life assets, or spent on capital expenditure (investments, acquisitions and long-life assets). 1/16/2012
  • 9. • Financing cash flows: Cash received from the issue of debt and equity, or paid out as dividends, share repurchases or debt repayments. 1/16/2012
  • 10. The End Thank you Good bye…………..!!! 1/16/2012