Cash flow analysis Essay Example | Topics and Well Written Essays - 3750 words

Cash flow analysis - Essay ExampleThe keep social club sells its products online and also done merchants. Other products and services the company provides are server and storage software, Microsoft Dynamics and video game consoles. Its also involved in mobile software production recently they purchased Nokia Handset Business. Without doubt the Microsoft company is one among the leading companies in its industry.A common size financial statement shows all items as percentages this enables easy analysis over a given time. A common analysis from 2011 to 2014 was made. This analysis illustrated a decrease in the profits made over those three years. On the other hand an gain in the cost of sales over this effect was observed. The operating cost remained the same over this period of time. The provision of 7% total sales was constant. The crystalise income as in june 2014 was 25.42% which was a decrease, in 2013 net income was 28%, 2012 was 23%, while 2011 was 33%. A statement for the those three years tells us that cash in and cash equivalents ant the current assets have change magnitude slowly over time. On a diametrical observation for the same period, there was a decline in terms of the long term assets of the company related to the decline in goodwill. In 2011 to 2014 the current and long term liabilities have held constant. There has been a decline from 47 to 44% in the total liabilities of the company while the stockholderss equity has increased over that period from 52 to 55%.The financial statement provides information regarding the prospect earnings dexterity of a corpoartions assets over and above an attribute of cash flows which might come from inventories and receivables . the figures in the put off is in USD $ in millions and was adopted from Microsoft Corporation, the annual reportsRatio analysis for this period was done to get an indication of the companys financial performance in