HFM CashFlow Calculation

Working with HFM Custom Rule Session#18 : Cash Flow Calculation Part I

Presented By :Amit Sharma

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Cash Flow From Operations Cash Flow from Operations measures the cash generated from the core business or operations of the business. Cash Flow From Operations (CFO) = Net ncome ncome ! "epreciation # $morti%ation !&'  ime $d*ustments $d*ustments !&' Changes in +or,ing Capital. Cash Flow From Operations is a line item in the Cash Flow -tatement.

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Cash Flow From Investing Activities Cash Flow From Investing measures the purchases and sales of long term investments including items such as capital expenditures, acquisitions, or investments in other securities such as stock and bonds. Cash Flow From Investing = et Capital !xpenditures of "ropert#, "lant, and !quipment $""!% &'( )ong *erm *erm Investm Investments ents Cash flow from investing activities will usuall# be negative. For most companies this represents investment in itself. Cash flows would onl# be positive when investments are disposed of. Cash Flow From Investing +ctivities is a line item in the Cash Flow tatement. Total Cash Flow

*otal Cash Flow = Cash Flow from -perations &'( Investing Cash Flow &'( Financing Cash Flow *otal Cash Flow of the entit# is the sum of the Cash Flow from all activities including operating, investing, and financing activities. It is the total #ou find at the bottom of the Cash Flow tatement labeled Change in Cash and Cash !quivalents/. *he *otal Cash Flow of a period of time will equal the difference between the entit#0s cash balance at the beginning and ending of the time period.

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Cash Flow From Financing Activities Cash flow from Financing measures the activities that fund the compan# and stakeholders $debt and equit# holders%. *hese activities include issuing or bu#ing back stock, issuing or repurchasing debt, and pa#ing dividends to shareholders. Cash Flow From Financing = Cash 1eceived From Issuance of !quit# or 2ebt 3 2ividends to hareholders 3 "urchase of -utstanding !quit# or 2ebt Cash Flow From Financing +ctivities is a line item in the Cash Flow tatement. ote4 *he above cash flows are segregated and detailed in the tatement of Cash Flow. *he sum of the three makes up the *otal Cash Flow for the entit#.

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HF eta!ata Structure

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Cash Flow from Operations CF Income

Net oit

Hs.Exp "A#CFIncome.C1#[None].C2#[No "A#CFIncome.C1#[None].C2#[None].C3#[None].C4#[None].I#[IC ne].C3#[None].C4#[None].I#[IC None] ! A#Netoit"$tops A#Netoit"$tops

CF %epeci&tion

%epeci&tion

Hs.Exp "A#CF%ep.C4#[None] ! A#%epeci&tion"$tops CF %iee( '&x

Accue( '&x

Hs.Exp "A#CF%e'&x ! A#Accue('&x.C4#Ince&ses ) A#Accue('&x.C4#%ece&ses*

CF Account +ecei&ble

-ot 'em +ecei&ble

Hs.Exp "A#CFAccts+ec "A#CFAccts+ec ! ,A#-ot'em+ec.C4#%ec ,A#-ot'em+ec.C4#%ece&ses e&ses ) A#-ot'em+ec.C4#Ince&ses/ A#-ot'em+ec.C4#Ince&ses/ 0 ,A#-ot'em+ecInteco.C4#%ece&ses.I#[IC 'op] ) A#-ot'em+ecInteco.C4#Ince&ses.I#[IC 'op] ) A#-ot'em+ecInteco.C4# A#-ot'em+ecInteco.C4#ement.I#[IC ement.I#[IC 'op]/* 'op]/*

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-ub CashFlowCalc() Cash Flow from Operations CF Inento5

Inentoies

Hs.Exp "A#CFInen ! A#Inentoies.C4#%ece&ses ) A#Inentoies.C4#Ince&ses CF Account &5&ble

-ot 'em &5&ble

Hs.Exp "A#CFAccts&5 ! ,,A#6&n7e(&t.C4#Ince&ses ) A#6&n7e(&t.C4#%ece&ses/ 0 ,A#-ot'em&5.C4#Ince&ses ) A#-ot'em&5. A#-ot'em&5.C4#%ece&s C4#%ece&ses/ es/ 0 ,A#-ot'em&5Inteco.C4# ,A#-ot'em&5Inteco.C4#Ince&ses. Ince&ses.I#[IC I#[IC 'op] 0 A#-ot'em&5Inteco.C4#ement.I# A#-ot'em&5Inteco.C4#ement.I#[IC [IC 'op] ) A#-ot'em&5Inteco.C4#%ece&ses.I#[IC 'op]//"

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Cash Flow from n/esting CF opet5 l&nts &n( E;uipment

'&n8ible Assets

Hs.Exp "A#CFE ! A#'&n8ibleAssets.C4#%ece&ses 9 A#'&n8ibleAssets.C4#Ince&ses* CF opet5 l&nts &n( E;uipment

'&n8ible Assets

Hs.Exp "A#CFInestN+ ! ,,A#:on8'em+ec.C4#%ece&ses ) A#:on8'em+ec.C4#Ince&ses/ 0 ,A#:on8'em+ecInteco.C4#%ece&ses.I#[IC 'op] ) A#:on8'em+ecInteco.C4#Ince&ses.I#[IC 'op] ) A#:on8'em+ecInteco.C4#oement.I# A#:on8'em+ecInteco.C4#oement.I#[IC [IC 'op]//* 'op]//* CF -ot 'e 'em m Inestment

-ot 'e 'em m Inestment

Hs.Exp "A#CF-ot'Inest ! ,,A#-ot'emInest.C4#%ece&ses ) A#-ot'emInest.C4#Ince&ses/ 0 ,A#Inestments.C4#%ece&ses ) A#Inestments.C4#Ince&ses//*

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Cash Flow from Financing CF -ot 'em %ebt

-ot 'em %ebt

Hs.Exp "A#CF-'%ebt ! A#-ot'em%ebt.C4#Ince&ses 9 A#-ot'em%ebt.C4#%ece&ses* CF :on8 'em %ebt

:on8 'em :o&ns

Hs.Exp "A#CF:'%ebt "A#CF:'%ebt ! A#:on8'em:o&ns.C4#Ince&se A#:on8'em:o&ns.C4#Ince&ses s) A#:on8'em:o&ns.C4#%ece&ses* CF :on8 'em bli8&tions

:on8 'em &5

Hs.Exp "A#CF:' "A#CF:'bli8 bli8 ! ,A#:on8'em&5 ,A#:on8'em&5.C4#Ince&ses .C4#Ince&ses ) A#:on8'em&5. A#:on8'em&5.C4#%ece&se C4#%ece&ses/ s/ 0 ,A#:on8'em&5Inteco.C4#Ince& ,A#:on8'em&5Inteco.C4#Ince&ses.I#[IC ses.I#[IC 'op] 'op] 0 A#:on8'em&5Inteco.C4#oement.I#[IC A#:on8'em&5Inteco.C4#oement.I#[IC 'op] 'op] ) A#:on8'em&5Inteco.C4#%ece&ses.I#[IC 'op]/ 0 ,A#oisions.C4#Ince&ses ) A#oisions.C4#%ece&ses/"

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CF E;uit5

C&pit&l -toc7

Hs.Exp "A#CFE;uit5 ! ,A#C&pit&l-toc7.C4#Ince&ses ) A#C&pit&l-toc7.C4#%ece&ses/ 0 ,A#&i(inC&pit&l.C4#Ince&ses ) A#&i(inC&pit&l.C4#%ece&ses/* CF %ii(en(s

%ii(en(s

Hs.Exp "A#CF%ii(en(s ! A#%ii(en(s* CF F<

CF pe&tions0CF Inestin80CF Fin&ncin8

Hs.Exp "A#CFF< ! ,A#C&s.C4#Ince&ses 0 A#C&s.C4#moement ) A#C&s.C4#%ece&ses/ ) A#CFpe&tions ) A#CFInestin8 ) A#CFFin&ncin8

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 AnyQue s t i on?

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