IHG

Cash flow statement

Cash flow statement- operations

Cash flow statement - investments

Cash flow statement- financing

Conclusion• Cash flow profile IHG for the year 2011 is basically good, half of the

cash flow from operations is used to finance debt repayments, and only 38 million is used to expand the business

• Operations +623 million US $• Investments –38• Financing -334

• Free cash flow = Net cash from operations – Capital expenditures – dividends = 623- (48+55) -148 =372 million $

Profitability profileThere is no gross profit in this income

statement, so you have to calculate it on your own = gross profit = Revenue – Cost of revenue= 1768-771= 997

Gross profit % = (997/1768 ) *100 = 56.3%

First subtotal is for the operating profit = Operating profit % = Operating profit / Revenue x 100 = 31.61%

The largest expense is the cost of sales or cost of revenue and it is (771/1768)*100= 43%

Financial position• Total assets composed of Non current

assets of (2173/2968)*100= 73%

• Current assets represent only 19% of the total assets (578/2968) *100=19.4%

Financial position• Total assets are financed through liabilities

= (2413/2968)x100=81%

• Highly leveraged business, it has enough cash to meet its debts (see cash flow statement)