Cash Flow Analysis and Forecasting The Definitive Guide to Understanding and Using Published Cash Flow Data

Introduction ix

SECTION ONE HISTORIC CASH FLOW ANALYSIS

1 Understanding How Cash Flows in a Business 3

2 Understanding Cash Flows Properly 21

3 Start-up, Growth, Mature, Decline 47

4 Restating the Cash Flows of a Real Business 59

5 Restating US GAAP Cash Flows 83

6 Analysing the Cash Flows of Mature Businesses 99

7 Analysing the Cash Flows of Growth Businesses 135

8 Growth and Mature – Further Analysis Issues 153

9 Analysing the Cash Flows of Start-up Businesses 171

10 Analysing the Cash Flows of Decline Businesses 179

11 What to do about Bad Cash Flows 185

12 Cash Versus Profit as a Measure of Performance 191

13 Cash Flow Analysis and Credit Risk 201

14 Cash Flow Analysis and Performance Measurement 215

15 Analysing Direct Cash Flow Statements 223

16 Generating a Cash Flow Summary from Profit and Loss Account and Balance Sheet Data 231

17 Summarising Historic Free Cash Flow 247

SECTION TWO FORECASTING CASH FLOWS

18 Introduction 255

19 Spreadsheet Risk 263

20 Good Practice Spreadsheet Development 275

21 The Use of Assumptions in Spreadsheet Models 295

Index 305