Analyzing Cash Flow Statements for a Steel Fabrication Business

The video tutorial explores cash flow statements, focusing on operating, investing, and financing activities. It highlights the differences between net income and operating cash flow, emphasizing the impact of non-cash items and working capital management. The tutorial also examines discretionary and operating activities in investing, and the role of board decisions in financing activities. The company discussed is active in capital allocation, using various strategies to manage cash flow effectively.

What are the two questions you should ask when reviewing each line of the cash flow statement?

How did the operating cash flow change from the previous year according to the text?

What factors contributed to the improvement in net income and operating cash flow?

What is the significance of note 22 in the cash flow statement?

What is the difference between discretionary and operating activities in the context of cash flow?

How is free cash flow calculated according to the text?

What decisions do owners, executives, and directors make regarding financing activities?