Analysis Financial Report Arizal Toni H. (46110014)

Nama    : ARIZAL TONI HARTONO

KELAS    : 3B / D-4

NIM       : 4611001

CASH FLOW TO DEBT

General Explanationof Financial Analysis

The financial analysis used to assess business continuity, stability, profitability of a business, sub-business or project.

Analysis of the cash flow statement can provide information on :

1.       Estimates of the condition of the cash flow in the future.

2.       Earnings quality and the ability to sustain operations in the future.

General terms, the financial statements consist of:

·         Income Statement

·         Statement of Changes in Capital or Retained

·         Earnings Reports

·         Balance sheet

·         Statement of Cash Flows

·         Notes to the Financial Statements

Financial Report

Financial report is a record of a company's financial information in the accounting period that can be used to describe the performance of the company.

GOAL

·         To provide information about Income and Outcome

·         To provide information on the basis of the operating, investing and financing.

·         To know the exact condition in order to maintain cash liquidity of the company.

CLASSIFICATION OF CASH FLOWS

1.       Cash flows from operating activities

2.       Cash flows from investing activities

3.       Cash flows from financing activities

 Cash Flows From Financing Activities

Cash flows from transactions affecting equity and corporate debt.

For Example : the issuance of equity and debt.

Cash Flow Analysis Techniques

1. Horizontal analysis

Comparing the value of the cash flows and the activity between two or more periods.

This is the for mula:         (Current year data - Last year's data )

                                                                Current year data

2. Vertical analysis

Comparing cash flows for a particular period.

                Net cash used in financing activities - all transactions are in financing activities

                                                    Net cash used in financing activities

3. Cross-section analysis

Comparing the cash flow of a company with another company or the industry average

Cash Flow to Debt

                This ratio measures how much of the operating cash flow generated to cover the company's liabilities, both current liabilities and noncurrent liabilities

Formula of Cash Flow to Debt is:

                                                                Net operating cash flow

                                                                       total liabilities