Continue with the case of Hero Honda Motors Ltd. You had prepared the CFS of the Company in Also you had carried out financial analysis of the company in and through the tools and techniques studied therein. Now extend your analysis to cover the cash flow statement to further support your analysis of the company’s financial position and performance. Towards this purpose, attempt the following requirements.
Requirements
- Analyse the cash flows from:
- Operating activities
- Investing activities, and
- Financing activities
- What are the financial strengths of the company emerging from the analysis of cash flow from operating activities? Discuss.
- Comment upon the quality of cash position of the company.
- Assess the ability of the company to generate positive cash flows from operations in future.
- What would have been the summary cash flow position from different activities if the first alternative on the treatment of dividend and interest paid were applied to this case? Which treatment will you prefer and why?
- Based on the cash flow analysis, would you:
- Lend to the company?
- Invest in the company?
- Like to join the company as an employee?
- Supply materials to the company?
Would you need further information for your decision-making? What? Why?
- Draft a crisp 3-page report.