Cash Flows

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Araneta

Properties Inc.
Statement of Cash
Flows
This presentation provides a comprehensive analysis
of the financial performance of Araneta Properties,
focusing on the Statement of Cash Flows and key
financial ratios that offer insights into the company's
liquidity, solvency, and profitability.
Net Cash Flow
Cash Inflows The difference between cash inflows
Cash generated from operating and outflows, indicating the overall
activities, investing activities, and change in the company's cash position.
financing activities.

1 2 3

Cash Outflows
Cash spent on operating expenses,
capital expenditures, and debt
servicing.
Liquidity Ratios

Current Liability Operating Cash Price to Cash Flow Ratio


Coverage Ratio Flow Ratio
Compares the company's
Measures the company's Evaluates the company's stock price to its cash flow
ability to pay its short- ability to generate per share, providing
term obligations using its sufficient cash from insights into its valuation.
current assets. operations to cover its
current liabilities.
Current Liability
Coverage Ratio

Definition Formula Interpretation


A ratio greater than 1 Current Assets / Current The ratio decreased from
indicates the company Liabilities 6.14 in 2022 to 5.42 in
can cover its short-term 2023, indicating a
obligations. reduced ability to cover
current liabilities with
operating cash flow.
Operating Cash Flow Ratio
Interpretation

A negative ratio of -
1 Definition 2 Formula 3 8% in 2023 compared
Measures a Net Cash from to a positive 9% in
company's ability to Operating Activities / 2022 suggests
generate cash from Current Liabilities insufficient operating
its core operations. cash flow to cover
debt obligations.
Price to Cash
Flow Ratio

Definition Formula Interpretation

A lower ratio suggests


Market Price per Share / The drastic shift from a
the stock is undervalued
Cash Flow per Share positive 116.51 in 2022
compared to its cash
to a negative -112.89 in
flow generation.
2023 indicates severe
market undervaluation or
substantial cash flow
deficits.
Solvency and Efficiency
Ratios
Asset Efficiency Ratio External Financing
Index Ratio
Measures how effectively
Indicates the company's
the company is utilizing its
reliance on external
assets to generate
financing to fund its
revenue.
operations and growth.

Profitability Ratios
Assess the company's ability to generate profits from its
operations and investments.
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Asset Efficiency Ratio

Definition Formula Interpretation


A higher ratio indicates Net Sales / Total Assets The decline from 2% in
more efficient asset 2022 to 1.32% in 2023
utilization and reflects decreased
management. efficiency in using assets to
generate revenue.
External Financing
Index Ratio

Definition Formula Interpretation


A ratio greater than 1 Net External Financing / Although slightly
suggests the company is Net Cash from Operating improved from -102% in
more dependent on Activities 2022 to -91.26% in 2023,
external financing. the high negative value
indicates continued
heavy reliance on
external financing.
Interpreting and Applying the Formulas
Ratio Interpretation Application
Current Liability Coverage Measure of short-term Assess ability to meet
liquidity immediate obligations

Operating Cash Flow Indicator of cash Evaluate operational


generation from efficiency and sustainability
operations
Price to Cash Flow Valuation metric Identify potentially
compared to cash flow undervalued stocks

Asset Efficiency Measure of how well Optimize asset utilization


assets generate revenue and management

External Financing Index Reliance on external vs. Assess financial


internal financing independence and
leverage
Conclusion and Key Takeaways

1 Improve operating 2 Address Market 3 Optimize Asset Utilization


Cash Flow perception and Cash
Flow Deficits

4 Reduce Dependency on 5 Enhance Liquidity and


External Financing Current Liability Coverage
Recommendations
• Increase operating cash flow through improved collections and cost control.
• Optimize working capital management, focusing on reducing receivables and inventory levels.
• Implement cost reduction strategies to enhance cash flow.
• Regularly review and adjust cash flow forecasts to ensure sufficient liquidity.
• Improve cash flow and enhance investor communication.
• Enhance cash flow by optimizing operational performance and controlling expenses.
• Increase internal financing through retained earnings and improve cash generation.
• Focus on improving operational cash flows to reduce the need for external funding.

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