Question: Select two companies within the same industry. Using Yahoo Finance or a similar site, evaluate the firms' cash flow statements for the past 3 years.
Select two companies within the same industry. Using Yahoo Finance or a similar site, evaluate the firms' cash flow statements for the past years. Here are some areas to focus on:
What do the ending cash balances reflect?
Is the trend moving in a positive direction?
Would you invest in one of these firms based on what you have evaluated?
Divide the operating cash flows by total debt. Does this figure appear to be high? If so then the company is in a healthy financial position.
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