Hindustan Unilever Ltd (HUL) is one of the leading players of FMCG industry. This post includes cash flow analysis for HUL. Further posts shall include more companies for comparative view.
Cash Flow Analysis of a company forms significant part of fundamental equity research. Growing cash flows is more important study factor as compared to net profit. Because, profits of a company can be biased. Thus, analysis of cash flows gives much clear picture of a company’s performance.
Moreover, how consistent has been the company in its cash flows over last 10 years as well as in comparison with the net profits.
Free Cash Flow:
While analysing cash flow statement, ‘free cash flow’ (FCF) is an important item. For a particular year:
Free cash flow = Cash flow from operating activities – Capital expenditure
Significant cash flow analysis
Company: Hindustan Unilever Ltd.
Industry: Fast Moving Consumer Goods
(1) Cash Flows over the years
(2) Earnings Quality
(3) Free Cash Flows
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