Join Jim Stice for an in-depth discussion in this video Interpreting Walmart's statement of cash flows, part of Running a Profitable Business: Understanding Cash Flow.
- Here is a cash flow statement for Walmart.…These numbers are from the year ended January 31st, 2013,…all of the numbers are in millions.…Now, this is an awesome piece of work, just look at that.…There are three categories in this statement of cash flows:…operating activities right at the top,…investing activities just below that in the middle,…and then at the bottom, financing activites.…Let's start with operating activities.…Cash from operating activities,…Walmart, + $25.591 billion.…That means the day-to-day operations…that Walmart engaged in during this year…generated over $25 billion in cash, that's great.…
When you look at a cash flow statement,…the first number you should look at…is cash provided by operating activities.…By the way, if that number is negative,…if a company's operations are actually burning cash,…consuming cash, that is not a good sign.…That's often the case for a startup company.…Often in a startup company,…you're paying for all of your expenses,…you're paying your employees,…you're paying for your advertising,…
Want to hear more from Jim and Kay? Learn about all three types of accounting—financial, managerial, and income tax—in their Accounting Fundamentals course.
- Differentiating between net income and operating cash flow
- Categorizing cash flow
- Using financial data to deduce cash flow
- Managing operating, investing, and financing cash flows
- Typical cash flow patterns
- Converting net income into operating cash flow
- Improving operating cash flow
Skill Level Intermediate
1. The Importance of Cash Flow Analysis
2. Overview of the Statement of Cash Flows
3. Using Cash Flow Data to Make a Loan Decision
4. Converting Income Statement Data into Operating Cash Flow Data
5. Managing Cash Flow
6. Cash Flow Numbers for Some Real Companies
The danger of free cash flow3m 56s
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