Thẻ ghi nhớ: Week 6. Cash flow statement+ Financial Ratios | Quizlet

Cash Flow Statement

A financial statement that shows the flow of money in and out of the business.

Operating activities

sources and uses of cash from business activities.
= how much cash is generated from the sale of products/ services and expenses

Investing activities

incoming/ outgoing cash from long-term investment

Financing activities

cash from investors/ bank
e.g. the use of cash to pay shareholders (cash distribution to owners)

Net cash flow

Simply cash inflows minus cash outflows over a given period

proceeds

Money earned from a sale

Stockholders

people or entities that own stock in a corporation and therefore are its owners

outflow

The cash flowing out of a business, its payments

inflow

The cash flowing into a business, its receipts

Dividend

Company's shared profits to the shareholders based on the corporation's performance.

Current ratio

=current assets/ current liabilities
measures liquidity and how much of a company's assets will have to be converted into cash in the next year to pay debts

Quick Ratio (Acid Test)

=liquid assets/ current liabilities, in which:
Liquid assets= current assets- inventory
It measures short-term solvency

liquidity

The ability to sell an asset for cash

liquid assets

Consisting of cash and things that can be easily sold and converted into cash

solvency

How easily a business can pay bills or debts when they are due

Return on Sales (ROS)

= Net income : Revenue
For every dollar gained from selling goods and providing services, how much profit is created

Return on Equity (ROE)

= Net income : Equity
For every dollar of capital invested and accrued in the company, how much profit is created

Year- Over- Year growth rate (YOY)

= profit Y2 : profit Y1
How much the profit (earnings after tax) has changed (higher or lower) when compared with that of the previous period