ABSTRACT

ALTERNATIVE FORMAT Many analysts are concerned with the longer-term ability of companies to generate cash, rather than with cash movements in a single period. Like them, we prefer to highlight separately the key movements which show operating performance, and management decisions about working capital, about fixed asset investment, and about the financing of the business. We do this in a cash flow statement which starts with operating profit and shows ‘net funds from operations’ before disclosing separately the changes in working capital.