Question

Using the same company that you chose in Week 3, analyze and report on the statement of cash flows. (Comment on operating, investing, and financing activities)

Answer 1

OPERTING CASH FLOWS-

1. walmart has more than 100% increase in profit on year to year comparison which shows a strong operating perfromance
2. depreciation remains steady for the last 4 years
3. company has also posted an increase in other operating activity profit therefore company has started earning from non regular activities as well
4. overall company has posted a strong operating performance

INVESTING CASH FLOWS-

1. copany is increasing having capital expenditures which indicates company is till looking for growth opportunities through Research expansion etc.
2. company's acquistions are also paying off . last year company acquired stake in flipkart from india and its acquisition is starting paying profits for the company.
3. company's is similar to other operating activities also earning from other investing activities i.e. side incomes are also helping company post better cash flows
4. overall investing cash flows are negative since company is focusing on CAPEX but eventually it will pay company in future

FINANCING CASH FLOWS-

1. company is consistently paying dividends year on year therefore investors who looks for safety first are also catered
2. company is buying its own shares from open market which shows the management faith in their own company and want to increase the ownership of the company in their own hands
3. company has paid debt of more that $1000 which helps company inching towards being debt free
4. company has post a loss in other finnacing activities which is a matter of concern.
5. company has posted negative financing cash flows which is not a good sign espacially other financing activities