# ihg cash flow statement. cash flow statement- operations

Post on 05-Jan-2016

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• IHGCash flow statement

• Cash flow statement- operations

• Cash flow statement - investments

• Cash flow statement- financing

• ConclusionCash 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 businessOperations +623 million US \$Investments 38Financing -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= 997Gross 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 positionTotal 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 positionTotal assets are financed through liabilities = (2413/2968)x100=81%Highly leveraged business, it has enough cash to meet its debts (see cash flow statement)

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