HFM CashFlow Calculation

www.bispsolutions.com

www.bispsolutions.com

Working with

Working with

HFM Custom Rule

HFM Custom Rule

Session#18 : Cash Flow Calculation Part I

Session#18 : Cash Flow Calculation Part I

Presented By :Amit Sharma

Presented By :Amit Sharma

www.bispsolutions.com

www.bispsolutions.com

Cash Flow From Operations

Cash Flow From Operations

Cash Flow from Operations measures the cash

Cash Flow from Operations measures the cash generated from the core business or

generated from the core business or

operations of the business.

operations of the business.

Cash Flow From

Cash Flow From Operations (CFO) = Net nco

Operations (CFO) = Net ncome ! "epreciation #

me ! "epreciation # $morti%ation

$morti%ation !&'

!&' 



ime $

ime $d*ustments !&'

d*ustments !&' Changes in +or,ing Capital.

Changes in +or,ing Capital.

Cash Flow From Operations is a line item in the Cash Flow -tatement.

Cash Flow From Operations is a line item in the Cash Flow -tatement.

www.bispsolutions.com

www.bispsolutions.com

Cash Flow From Investing Activities

Cash Flow From Investing Activities

Cash Flow From Investing measures the purchases

Cash Flow From Investing measures the purchases and sales of long term

and sales of long term investments

investments

including items such as capital

including items such as capital expenditures, acquisitions, or investments in other

expenditures, acquisitions, or investments in other

securities such as stock and bonds.

securities such as stock and bonds.

Cash Flow From Investing = et Capital !xpenditures of "ropert#, "lant, and !quipment

Cash Flow From Investing = et Capital !xpenditures of "ropert#, "lant, and !quipment

$""!%

$""!% &'(

&'( )ong *e

)ong *erm In

rm Investm

vestments

ents

Cash flow from investing activities will usuall#

Cash flow from investing activities will usuall# be negative. For most companies this

be negative. For most companies this

represents investment in itself. Cash flows would onl#

represents investment in itself. Cash flows would onl# be positive when investments

be positive when investments

are disposed of.

are disposed of.

Cash Flow From Investing +ctivities is a line item in the Cash Flow tatement.

Cash Flow From Investing +ctivities is a line item in the Cash Flow tatement.

Total Cash Flow

Total Cash Flow

*otal Cash Flow = Cash Flow from -perations &'( Investing Cash Flow &'( Financing Cash

*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

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

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

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

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.

www.bispsolutions.com

www.bispsolutions.com

Cash Flow From Financing Activities

Cash Flow From Financing Activities

Cash flow from Financing measures the activities that fund the compan# and

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

stakeholders $debt and equit# holders%. *hese activities include issuing or bu#ing back

stock, issuing or repurchasing debt, and pa#ing dividends to shareholders.

stock, issuing or repurchasing debt, and pa#ing dividends to shareholders.

Cash Flow From Financing = Cash 1eceived From Issuance of !quit# or 2ebt 3

Cash Flow From Financing = Cash 1eceived From Issuance of !quit# or 2ebt 3

2ividends to hareholders 3 "urchase of -utstanding !quit# or 2ebt

2ividends to hareholders 3 "urchase of -utstanding !quit# or 2ebt

Cash Flow From Financing +ctivities is a line item in the Cash Flow tatement.

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.

ote4 *he above cash flows are segregated and detailed in the tatement of Cash Flow.

*he sum of the three makes up the

www.bispsolutions.com

www.bispsolutions.com

HF eta!ata Structure

www.bispsolutions.com

www.bispsolutions.com

Cash Flow from Operations

Cash Flow from Operations

Hs.Exp

Hs.Exp "A#CFIn"A#CFIncome.C1#[None].C2#[Nocome.C1#[None].C2#[None].C3#[None].C4#[None].I#[IC None]ne].C3#[None].C4#[None].I#[IC None] !

! A#Netoit"A#Netoit"$tops$tops

Hs.Exp "A#CF%ep.C4#[None] ! A#%epeci&tion"$tops Hs.Exp "A#CF%ep.C4#[None] ! A#%epeci&tion"$tops

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

Hs.Exp "A#CFA

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

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#Ince&ses.I#[IC 'op] ) A#-ot'e

A#-ot'em+ecInteco.C4#m+ecInteco.C4#ement.I#[IC ement.I#[IC 'o'op]/*p]/* Net oit Net oit CF Income CF Income %epeci&tion %epeci&tion CF %epeci&tion CF %epeci&tion Accue( '&x Accue( '&x CF %iee( '&x CF %iee( '&x

-ot 'em +ecei&ble -ot 'em +ecei&ble CF Account +ecei&ble

www.bispsolutions.com

www.bispsolutions.com

-ub CashFlowCalc()

-ub CashFlowCalc()

Cash Flow from Operations

Cash Flow from Operations

Hs.Exp "A#CFInen ! A#Inentoies.C4#%ece&ses

Hs.Exp "A#CFInen ! A#Inentoies.C4#%ece&ses

) A#Inentoies.C4#Ince&ses

) A#Inentoies.C4#Ince&ses

Hs.Exp "A#CFAccts&5 ! ,,A#6&n7e(&t.C4#Ince&ses ) 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#6&n7e(&t.C4#%ece&ses/ 0 ,A#-ot'em&5.C4#Ince&ses ) A#-ot'e

A#-ot'em&5.m&5.C4#%ece&sC4#%ece&ses/ 0 es/ 0 ,A#-ot'e,A#-ot'em&5Inteco.C4#m&5Inteco.C4#Ince&ses.Ince&ses.I#[IC 'op] 0I#[IC 'op] 0 A#-ot'e

A#-ot'em&5Inteco.C4#ement.I#m&5Inteco.C4#ement.I#[IC 'op] )[IC 'op] ) A#-ot'em&5Inteco.C4#%ece&ses.I#[IC 'op]//" A#-ot'em&5Inteco.C4#%ece&ses.I#[IC 'op]//" Inentoies Inentoies CF Inento5 CF Inento5

-ot 'em &5&ble -ot 'em &5&ble CF Account &5&ble

www.bispsolutions.com

www.bispsolutions.com

Cash Flow from n/esting

Cash Flow from n/esting

Hs.Exp "A#CFE ! A#'&n8ibleAssets.C4#%ece&ses 9 Hs.Exp "A#CFE ! A#'&n8ibleAssets.C4#%ece&ses 9 A#'&n8ibleAssets.C4#Ince&ses*

A#'&n8ibleAssets.C4#Ince&ses*

Hs.Exp "A#CFInestN+ ! ,,A#:on8'em+ec.C4#%ece&ses ) 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+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#Ince&ses.I#[IC 'op] ) A#:on8'

A#:on8'em+ecInteco.C4#oement.I#em+ecInteco.C4#oement.I#[IC [IC 'o'op]//*p]//*

Hs.Exp "A#CF-ot'Inest ! ,,A#-ot'emInest.C4#%ece&ses ) 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#-ot'emInest.C4#Ince&ses/ 0 ,A#Inestments.C4#%ece&ses ) A#Inestments.C4#Ince&ses//* A#Inestments.C4#Ince&ses//* '&n8ible Assets '&n8ible Assets CF opet5 CF opet5

l&nts &n( E;uipment l&nts &n( E;uipment

'&n8ible Assets '&n8ible Assets CF opet5

CF opet5

l&nts &n( E;uipment l&nts &n( E;uipment

-ot -ot 'e'emm Inestment Inestment CF -ot CF -ot 'e'emm Inestment Inestment

www.bispsolutions.com

www.bispsolutions.com

Cash Flow from Financing

Cash Flow from Financing

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

A#-ot'em%ebt.C4#%ece&ses*

Hs.Exp

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

A#:on8'em:o&ns.C4#%ece&ses*

Hs.Exp

Hs.Exp "A#CF:"A#CF:''bli8 bli8 ! ! ,A#:on8',A#:on8'em&5em&5.C4#Ince&ses .C4#Ince&ses ) A#:on8'e) A#:on8'em&5.m&5.C4#%ece&seC4#%ece&ses/ s/ 00 ,A#:on8'

,A#:on8'em&5Inteco.C4#Ince&em&5Inteco.C4#Ince&ses.I#[IC ses.I#[IC 'o'op] 0p] 0 A#:on8'

A#:on8'em&5Inteco.C4#oement.I#[IC em&5Inteco.C4#oement.I#[IC 'o'op] p] ))

A#:on8'em&5Inteco.C4#%ece&ses.I#[IC 'op]/ 0 ,A#oisions.C4#Ince&ses ) 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/"

A#oisions.C4#%ece&ses/"

-ot 'em %ebt -ot 'em %ebt CF -ot 'em %ebt

CF -ot 'em %ebt

:on8 'em :o&ns :on8 'em :o&ns CF :on8 'em %ebt

CF :on8 'em %ebt

:on8 'em &5 :on8 'em &5 CF :on8 'em

CF :on8 'em bli8&tions bli8&tions

www.bispsolutions.com

www.bispsolutions.com

Hs.Exp "A#CFE;uit5 ! ,A#C&pit&l-toc7.C4#Ince&ses ) A#C&pit&l-toc7.C4#%ece&ses/ 0 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/*

,A#&i(inC&pit&l.C4#Ince&ses ) A#&i(inC&pit&l.C4#%ece&ses/*

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

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

C&pit&l -toc7 C&pit&l -toc7 CF E;uit5 CF E;uit5 %ii(en(s %ii(en(s CF %ii(en(s CF %ii(en(s

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

www.bispsolutions.com

www.bispsolutions.com

www.bispsolutions.com

www.bispsolutions.com

www.bispsolutions.com

www.bispsolutions.com

www.bispsolutions.com

www.bispsolutions.com

www.bispsolutions.com

www.bispsolutions.com

 A