Post your response to the discussion board by the date listed. Post at least two replies to classmates’ responses for this week’s discussion board by
Discussion: Choose a publicly traded corporation that you are interested in.
- Go to their latest annual report and locate the cash flow statement
- Post a link to the statement you found
- Summarize what you found after analyzing the operating, investing, and financing section
- Share your findings
- How would you say they are doing on a cash flow basis?
PLEASE REPLY TO THE FOLLOWING 2 STUDENTS AFTER COMPLETING THE ABOVE POST
Publicly Traded Company of Choice: The Hershey Company (Because who doesn’t love chocolate?)
I grew up just a couple of hours from the Hershey plant, have taken many tours to watch them make their magic, and still love their chocolate bars. I figured it would be interesting to use them as my publicly shared company of choice to shine light on just how many millions this chocolate juggernaut shuffles in a years’ time. And wow, why didn’t I get in the candy business?!?!
Hershey Company assesses their liquidity in terms of their ability to generate cash to fund their operating, investing and financing activities. The main important factors affecting the company’s liquidity include cash flows generated from operating activities, capital expenditures, acquisitions, dividends, repurchase of outstanding shares, adequacy of available commercial paper and bank lines of credit, and the ability to attract long-term capital with satisfactory terms. They generated substantial cash from operations and remain in a strong financial position, with sufficient liquidity available for capital reinvestment, payment of dividends and strategic acquisitions. Hershey Company’s working capital generated cash of $22 million in 2015, while it consumed cash of $169 million in 2014. This fluctuation was mainly driven by lower inventory purchases in the 2015 period, since certain raw material inventory had been built up at the preceding year-end to take advantage of favorable pricing. Their hedging activities favorably impacted cash flow by $55 million in 2015 versus an unfavorable impact of $78 million in 2014, due mainly to market gains and losses on their commodity futures….
Top cash flow activities in order of highest dollar amount: Operating activities, investing activities, financing activities, liquidity and capital Resources. The previously mentioned are all having bounce back years from a somewhat stagnant 2014.
The company that I chose to do is Apple Inc. I chose Apple Inc. because I know many people are very familiar with this company. I am very familiar with Apple, I have Apple for both my phone and my computer.
After analyzing the operating, investing, and financing activities I noticed that for the most part all of Apples cash has increased. I see this as a good thing because it shows that the company is doing well. In 2014 Apple generated $59,713 in cash for operating activities. Then in 2015 they had a big jump and generated $81,266, which shows that they are selling more. As you look through the of the cash flow sheet you can see that selling more effects everything else on the sheet because you are spending more money while making more money.
Looking at the Cash Flow statement every year Apple keeps doing better. I can see this because the amount of cash keeps going up.