Ten hard questions to ask or be asked
| 1 | Are there any large or unusual items in the cash flow statement? |
| 2 | Is operating cash flow positive and growing? Is it greater than net profit? |
| 3 | Does operating cash flow cover net profit plus depreciation (i.e. consumption of capital)? |
| 4 | Does operating cash flow cover depreciation plus dividends? Investment plus dividends? |
| 5 | Does investment cash flow reveal significant purchases or sales of fixed assets? |
| 6 | Does investment cash flow reveal replacement of depreciated fixed assets? |
| 7 | Does investment cash flow reveal investment or divestment of subsidiaries? |
| 8 | Does investment cash flow reveal other investments or divestments? |
| 9 | Does financing cash flow show repayment of loans, or new borrowing? |
| 10 | Does financing cash ... |
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