FIN619 Final Project on Cash Flow Ratios

FIN619 Final Project on Cash Flow Ratios

FIN619 Final Project Cash Flow Ratios’ Analysis of Masood textile mills limited, Nishat textile mills and Azgard9 textile for the years 2009, 2010 and 2011.

FIN619 Project Dedication

I would like to dedicate my FIN619 project to my parents who encourage me through my academic career and make possible for me to stand where I am today.

FIN619 Project Acknowledgement

First of all I am thankful to God Almighty, Who awarded me good health and capabilities to accomplish the task given to me in successful manner, Without His help I was not able to perform this task. I am very thankful to my family especially my father for such a pure support and guidance. I am very thankful to my honorable and respected teacher Mian Aamir who is always there to support and help me whenever I need it. I am thankful to all my class fellows especially Misbah Saeed and all other friends who help me throughout my Fin619 Final project.

Cash Flow Analysis

The importance of cash flow statement lies in the fact that it explains the changes in cash and gives insight to the company’s operating, investing and financial activities. Also, cash flow statement will unveil the company’s ability to generate cash to meet its short-term obligations, thereby assessing if company’s liquidity and solvency position is sound.

In a nutshell, the cash flow statement is made up of 3 categories, namely

1. 1.      Operating activities
2. 2.      Investing activities
3. 3.      Financing activities.

FIN619 Final Project topics

Operating activities – These are revenue generating activities of the company, which normally includes cash receipts from sale of goods and services, cash payments to suppliers for goods and services and disposal gains and losses of fixed assets.

Investing activities – These are activities that involve the acquisition and selling of fixed assets (long termed assets like land, building or plant), cash receipts from the disposal of fixed assets and cash payments to acquire fixed assets.

Financing activities – These are activities, which change or impact the size and the composition of owners’ capital. They include cash proceeds from issuing shares, or debt and payment of dividends.