Find an annual report for a comany of interest perhaps your

Find an annual report for a comany of interest (perhaps your employer). Publicly held company annual reports (10K) can be located via a seach link at http://www.sec.govledgar/searchedgar/webusers.htm NOTE: To perform the search in the Edgar Archives the best way is to enter the \"ticker symbo\" for the company. In Yahoo finance (MSN, or other investment websites) enter the company\'s name next to the icon \"Get Quotes\". For example, Tech Data Corp\'s ticker symbol is \"TECD\" and Bloomin\' Brands ticker symbol is BLMN\". If you need assistance, please e-mail me Click on the link to \"Interactive Data\" and then the link to the \"Financial Statements\". Locate and review the Statement of Cash Flows. Share in your post why you are interested in this company and information you found useful in the Statement of Cash Flows. For example, where is most of the company\'s cash coming from. If it is operating activities it is a \"good\" sign. If net cash flow from operating activities is negative (using) cash how is the company generating cash (i.e., discuss the investing and financing activities). Calculate \"free cash flow\". Share with the class your insights regarding the performance of this company based on your analysis of this financial statement.

Solution

Home Depot Inc is a retailer involved in the sales of home improvement prodcuts and building materials. The company operates through warehouse style stores where it provides home improvement products, lawn and garden products, building materials and also offers professional services for installation services through independent contractors.

The company\'s cash flow statement shows a free cash flow of $8.16 billion in 2017. The free cash flow has increased over the years from 2014 to 2017. This is as a result of a positive operating cash flow in all the years. The net operating cash flow has also increased over the years and is the highest in 2017. This means the company is generating cash from its operations. This is as a result of increasing net income.

The net cash flow from investing activities is a outflow due to capital expenditures required to expand business and cash flow from financing activities is also an outflow resulting from payment of dividends, repurchase of stock and repayment of debt.

Thus we see that most of the cash is coming from operating activities and there is cash outflow from investing and financing activties. This is a good sign and there is an increase in the cash balance in 2017 of $322 million due to operating activities ressulitng in a free cash flow of $8.16 billion.

We can say the company has a good performance as the profits are increasing, also company is paying dividends to its shareholders and is reducing its debt.