Cah Flow Statement Analysis
Cash Return On Current Liabilities
Ratio Method
A. Cash Flow Statement
Cash Flow Statement is financial report
that records amount of cash and cash equivalent which entering into company’s
and leaving from a company’s. This report a mandatory part of a company’s
financial reports since 1987 and completing Balance sheet, Capital Statement
and Income Statement.
The Amount of cash that enter in Company
called Cash Inflows, and the amount of cash that going out from company called
Cash Outflows
Cash flow Statement is partitioned into
three segments, namely :
1. Cash flow resulting from operating
activity
2. Cash flow resulting from investing
activity
3. Cash flow resulting from financing
activity
a. Cash Flow From Operating Activity
Cash inflows and
Outflows resulting from day-to-day business operations, includingthe collection
of cash from sales and payment of expenses. Example:
· Receipts from the sale ofgoods or
service
· Interest received on loans
· Payment to suppliers for goods and
service
· Payment to employees
· Buying merchandise item
b. Cash Flow From Investing Activity
The investing
activities encompass the acquisition and desposition of asset in transactions
that are separate from the central activity of the reporting company like sell
or buy non-current assets. Example buy or sell Fixed Asset.
c. Cash Flow From Financing Activity
Financing Activity
related primarily to liabilities and shareholders equity in transactions that
are separate from central, day-to-day activities of the company. Cash inflows
from financing activities usually include issuing capital stock or incurring
liabilities such as bonds or notes payable. Outflows are created by the
distribution of devidens, the aquisition of treasury stocks, the payment of
noncurrent liabilities, and the like.
As
we know the financial statement just show to us the amount of financial
statement it self, so the Stockholders or financial user not understan what the
meaning of amount in Financial Statement, it’s why we need to analysis the the
financial statement specially Cash Flow Statement. The Adventages of analysis
Cash flow statement are:
1. The
shareholders can know where cash and cash equivalent coming from and how
its being spend,
2. Provide information on a company’s
liquidity and solvency and it’s ability to change cash flows in the future
circumstances,
3. Provide additional information for
evaluating changes in assets, liabilities and equity.
Many Method we can use
for analysis financial Statment those are:
1. Horizontal analysis
2. Vertical analysis
3. Cross-section
4. Ratio analysis
a. Horizontal analysis is a prosedure
infundamental analysis in which company’s financial statementsover a certain
period of time. The analysis will use his or her discretion when choosing a
particular timeline, however, the decision is often based of the investing time
horison under consideration
b. Vertical Analysis
Vertical Analysis is a
method of financial statement anaylis inn which each entry for each of the
three major categories of accounts (asset, liabilies and equities) in balance
sheets is represented as a proportion of the total account. The main adventages
of vertical analysis is that the balance sheets of businesses of all sizes can
easly be compared. It also makes it easy to see relative annual changes whitin
on business.
c. Cross- section
Cross- section is a
type of analysis investor, analysis or portofolio manager may conduct on
company in relation to that company’s industry or industry peers. The analysis
compares one company against the industry it operates whitin, or directly
against certain competitors whitin the same industry, in an attempt to discover
the best of the breed.
d. Financial Ratio Analysis
A tool used by
individuals to conduct a quantitative analysis of information in a company's
financial statements. Ratios are calculated from current year numbers and are
then compared to previous years, other companies, the industry, or even the
economy to judge the performance of the company. Ratio analysis is
predominately used by proponents of fundamental analysis. The kinds of
financial Ratio Analysis are:
· Cash Return On Current Liabilities Ratio
· Cash Return On Total Liabilities Ratio
· Cash Return On Total Assets Ratio
·
The Advantage Analysis of Cash Flow Statement For Cash
Generating Capability Assessment
·
Statement of cash flows can enhance the ability to
evaluate the performance and financial health of the company
·
The shareholders can know
where is
cash and cash equivalent coming from and how its being spend
Cash Return On Current Liabilities Ratio (CROCL)
Cash Return on Current
Liabilities Ratio (CROCL) is ratio that
we use for measuring how much cash flow
operation which is result by company for funding all the company’s Liabilities,
| CROCL = Net Cash Flow from Operating Activity/Current Liabilities |
PT
BHAKTI INVESTAMA
|
YEAR
|
CF
FROM OPERATING ACTIVITY
|
Current
Liabilities
|
|
2011
|
744.652
|
3.692.306
|
|
2012
|
813.895
|
4.405.583
|
|
|
|
* 2011 = 744.652 / 3692306 = 0.20 or 20%
* 2012 = 813.895 / 4.405.583 = 0.18 or 18%
