PART 5
Income and Cash Flows
Manpower Inc. is a world leader in employment services, providing clients with temporary, contract, and permanent employees. The company is often cited as a bellwether for the health of the job market as well as the overall economy. From 2007 to 2008, annual revenues rose from $20.5 billion to $21.6 billion, a 5.1 percent jump in a difficult economic environment. Yet profits fell 55 percent, from $485 million to $219 million. At the same time, cash flows from operations increased an outstanding 83 percent, from $432 million to $792 million. Three different measures of operating success seemed to be moving in vastly different directions. How can revenues shoot up, while profits lag and operating cash flows jump so dramatically? These kinds of questions are addressed in Chapters 13 and 14, which cover the income statement and statement of cash flows, respectively.
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