Calculation Of Operating Cash Flow

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Question

Using the following selected financials, calculate the free cash flow (FCF) for each company.

 

 

2009

2008

2007

FCF Nike

 

 

 

FCF Cell Therapeutics

 

 

 

 

  • Which company had excess cash left over in 2009?
  • Which company had operating cash flow in excess of net income every year?
  • Which company is burning through cash every year?
  • Given the relationship between trends in FCF, earnings, and ultimately a company’s stock price, which of the two companies do you think is represented in the following stock chart?

 

Summary

The question belongs to Finance and it discusses about comparing two companies in terms of excess cash and operating cash flow in net income

Total Word Count 220

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