Cash Flow Statement Analysis of Australian company

Premier investment Limited shares and Australian company related to investment related activities. The headquarters of the company are located and Australia. The company was founded back and 1987. This part of assignment has conducted analysis related to the cash flow statement of the company for the last 3 years from 2016 to 2018.

The above graph provides the trend related to the change in cash flow for the company from 2016-2018. Graph suggests that value of net change in cash flow was highest in 2018 during the last three years while it significantly decreased in 2017. These results clearly suggest that cash flow from operating activities, financing activities and investing activities has been following uncertain fluctuations during the last three years of operations.

The above graph provide trend related to free cash flow from the cash flow statement of the company from 2016-2018. Free cash flow ratio suggests that company experience to significant decrease in level of cash flow in 2017 as compared to the cash flow realized 2016 and 2018. It is mostly because of the fact that capital expenditure in 2016 significantly increased as compared to 2015 and 2018 capital expenditure. It was mostly because of the fact that company purchased significant amount of long term assets in 2017 which increased the outflow related to capital expenditure as compared to 2016 and 2018 values for capital expenditure.

 The above table provides information regarding the cash process from 2016 till 2018 and cash payment from 2016 till 2018 for the company in million US dollars. Values related to cash receipts clearly suggest that company has been experiencing increasing trend for cash receipts which is a positive sign for the future cash flow of the company. As far as cash payment is concerned, it can be realized that there was a significant increase in cash payment in 2017 mainly because of significant increase in capital expenditure. It can be observed that the net cash flow which is the difference between the cash receipt and cash payment has been positive for the all three years from 2016 till 2018 for the company. This is a positive sign for cash flow position of the company.

Assessment of other relevant historical information of investment company:

The above chart provides historical information regarding the share price movement of the premier investment company. Historical movement of share price for the company suggests that the share price of the company has been generally following increasing trend from the last one month. The above graph represents the historical share price movement for the last one month. Increase in share value of the company clearly suggest that the shareholders of the company and potential investors and stakeholders are interested in making investment related to shares of the company which is a positive sign for the market capitalization of the company. Increase in share price of the company will contribute towards increase in level of market capitalization keeping other factors as constant. This also suggests that the potential investors and shareholders of the company are satisfied with the performance of the company due to which they are interested towards purchasing the shares of the company and stock market for investment related purposes.

 With the passage of time, globalization and internet usage is increasing. With increase in amount of internet usage, trend related to online shopping is increasing. The above graph provides information regarding the online sales of the company from 2013 till 2018. It can be observed from the trend line that internet performance or internet sales of the company has been following increasing trend suggesting that customers of the company are now also utilizing online internet based platforms in order to purchase the products and services offered by the company. This will provide significant potential to company to increase their market share in future and it will also help the management to effectively compete with competitors in same industry by enhancing focus on internet performance as well. Online sales and 2013 for approximately 19 million US dollars and they increased to approximately 112 million US Dollars in 2018. This significant increase in just 6 years is evidence for the potential related to internet shopping and online shopping. In order to be successful in future, it is important to have proper blend of online business operations and physical business operations to satisfy the demands of the customers accordingly.

References of Cash Flow Statement Analysis of Australian company

investing. (2019). Premier Investments Ltd (PMV). Retrieved 05 10, 2019, from investing: https://www.investing.com/equities/premier-inv-chart

Premier Investments Limited. (2018). Annual Report 2018. Premier Investments Limited.