Comment and analyze the company\'s cash flow and balance sheet, • What is the fi
ID: 2478568 • Letter: C
Question
Comment and analyze the company's cash flow and balance sheet,
• What is the financial health of this company?
• Would you work for this company?
• Would you lend money to this company?
• Would you invest in this company? etc
Operating Activities
Investing Activities
Financing Activities
Fiscal year is January-December. All values USD millions. 2011 2012 2013 2014 2015 5-year trend Net Income before Extraordinaries 6.46B 6.21B 6.79B 6.56B 5.5B Depreciation, Depletion & Amortization 2.61B 2.61B 2.66B 2.63B 2.42B Depreciation and Depletion 2.48B 2.49B 2.55B 2.53B 2.34B Amortization of Intangible Assets 133M 119M 110M 92M 75M Deferred Taxes & Investment Tax Credit 495M 321M (1.06B) (19M) 78M Deferred Taxes 495M 321M (1.06B) (19M) 78M Investment Tax Credit - - - - - Other Funds 222M (1.1B) 338M 183M 1.88B Funds from Operations 9.79B 8.05B 8.73B 9.35B 9.87B Extraordinaries - - - - - Changes in Working Capital (844M) 345M 958M 1.16B 707M Receivables (666M) (250M) (88M) (343M) (461M) Accounts Payable 520M 548M 1.01B 1.16B 1.69B Other Assets/Liabilities (27M) - (51M) 80M (335M) Net Operating Cash Flow 8.94B 8.39B 9.69B 10.51B 10.58BExplanation / Answer
Financials of the company is strong. The company's cash generation from operations is descent. Further the working capital management of the company seems to be good as it is able to finance its payables from receivables to a large extent. The company has also incurred capital expenditure and purchased investments during the year, and good amount has been financed from own generations. Company has during the period purchased some of its common stock and paid of long term debt also while paying dividend to the shareholders. The net cash outflow from financing activities is also financed from generations from operations. Thus the company is strong enough.