Analysis of cash flow

Analysis of cash flow

Introduction

The movement of money in an out of the business or any other financial product is recorded in the cash flow. The measurement of these changes in cash is done over a period, a fiscal year or any finite period. Its measurement is helpful in calculating various aspects and is helpful in valuing the company. It helps the manager, shareholder, potential investor and directors in understanding the liquidity of the company, the rate of return of the company, the potential dividends to be paid, and the idle cash in the company, which can be invested or paid as dividend (Prinsloo & Rosenberg 2004).

Intel corporation cash flow analysis

Intel Corporation is listed on the NASDAQ stock exchange. It is American company, which is known as a chipmaker to the world. Its head office is in California. Based on revenue it is the world largest and the highest valued chipmaker. It was founded in the year 1968.

The cash flow of the company has been moving on wave trends. The cash flow of the company in the year 2011 showed a net change of negative 438 million dollars. There was a decrease of 1949 million dollars in comparison to last year of $ 1511. This year, the financing cash activity increased by (106358). This increase was attributed to the repurchase of the company shares from the market and the issuance of the debt. Thus the overall net cash flow was (438) in the year 2011 and was offset by the opening cash flow. The combined effect of the net cash flow for the three years was a positive one thousand seven hundred million us dollars.

Exxon Mobil cash flow analysis

Exxon Mobil is an American company, which is a multinational oil and gas corporation. It was formed by the merger of Exxon and Mobil in the year 1999. The head office of the company is Texas. This company based on revenue, is the world largest oil company. It has the largest market capitalization based on publicly traded company (Mortished 2010).

The company also topped the list of Forbes global in the year 2012. The reserves of the company in the year 2007 were about 72 billion barrel. The company had a negative cash flow in the year 2009 and 2010. In the year 2011, the cash flow showed a positive cash flow of 4839. This was due to substantial growth in income and sale of assets. Thus, the combined effect of the company for the last three years was a negative 18773 million dollars.

General motors' cash flow analysis

General motors' is a car manufacturing company. The company has been facing serious turmoil after the 2008 recession. It was also bailed out by the government during the recession period. Thus in 2009 the company faced serious operation losses. Thus, the operation activity showed a negative cash flow of 17239 million dollars. In that year the company through other financing schemes got 45677 million dollars, thus the cash flow improved to 9017 ...