Find an annual report for a comany of interest (perhaps your employer). Publicly

Question

Find an annual report for a comany of interest (perhaps your employer). Publicly held company annual reports (10K) can be located via a seach link at http://www.sec.govledgar/searchedgar/webusers.htm NOTE: To perform the search in the Edgar Archives the best way is to enter the "ticker symbo" for the company. In Yahoo finance (MSN, or other investment websites) enter the company's name next to the icon "Get Quotes". For example, Tech Data Corp's ticker symbol is "TECD" and Bloomin' Brands ticker symbol is BLMN". If you need assistance, please e-mail me Click on the link to "Interactive Data" and then the link to the "Financial Statements". Locate and review the Statement of Cash Flows. Share in your post why you are interested in this company and information you found useful in the Statement of Cash Flows. For example, where is most of the company's cash coming from. If it is operating activities it is a "good" sign. If net cash flow from operating activities is negative (using) cash how is the company generating cash (i.e., discuss the investing and financing activities). Calculate "free cash flow". Share with the class your insights regarding the performance of this company based on your analysis of this financial statement.

Explanation / Answer

Cash flow

Period ending

The Home Depot, Inc. (HD)

Cash flow

Fig.in '000s

Period ending

29/1/2017 31/1/2016 1/2/2015 Net income 79,57,000 70,09,000 63,45,000 Operating activities, cash flow provided by or used in Depreciation 19,73,000 18,63,000 17,86,000 Adjustments to net income 2,67,000 1,00,000 -98,000 Changes in accounts receivable -1,38,000 -1,81,000 -81,000 Changes in liabilities 6,54,000 11,51,000 5,58,000 Changes in inventory -7,69,000 -5,46,000 -1,24,000 Changes in other operating activities -1,61,000 -23,000 -1,44,000 Total cash flow from operating activities 9783000 9373000 8242000 Increasingly positive cash generated from operations,mainly due to depreciation& delayed settlement of liabilities Investment activities, cash flow provided by or used in Capital expenditure -1621000 -1503000 -1442000 Investments - 1,44,000 3,23,000 Other cash flow from investment activities 38,000 -16,23,000 -1,52,000 Total cash flow from investment activities -1583000 -29,82,000 -12,71,000 Cash is used in investing activities especially purchase of capital assets Financing activities, cash flow provided by or used in Dividends paid -34,04,000 -30,31,000 -25,30,000 Sale purchase of stock -66,62,000 -67,72,000 -67,48,000 Net borrowings 22,74,000 40,12,000 22,32,000 Cash is generated from borrowings Other cash flow from financing activities -78,000 4,000 -25,000 Total cash flow from financing activities -78,70,000 -57,87,000 -70,71,000 Net Cash is used in investing activities especially payment of dividends & repurchase of stocks Effect of exchange rate changes -8,000 -1,11,000 -1,06,000 Change in cash and cash equivalents 3,30,000 6,04,000 -1,00,000 Positive cash mainly due to depreciation funds,postponing trade liabilities & borrowing long-term funds. Free cash flow (CFO-capital expenditure) 8162000 7870000 6800000 FCFF has been consistently increasing

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