Cash Flow Analysis and Forecasting: The Definitive Guide to Understanding and Using Published Cash Flow Data (The Wiley Finance Series)

Profit is nice but cash is critical to really understanding an investment and the template provided by the author shows you the way. The author walks us through a process of converting a normal cash flow statement into a better understood template format. Once converted to the template almost anyone with common business sense can understand how cash is flowing thru a company. The template allows an investor to to see how much cash a company is actually generating, where the money goes (such as interest, taxes, capex, investments) and to see how it is financed (debt, equity or cash on hand). The author also provides us with analysis of the template format for each phase of the business life cycle (startup, growth, mature, declining) that all companies eventually experience. It will help if you know your way around a cash flow statement - but it is not required. If you don't, you may need to put in a little work to follow the examples. However, if you do put in the effort, you will find the exercise well worth it and it will be of immense help if you are making your own investment decisions. This is really an excellent book and if I could recommend only one book on investment financial analysis this would be it.

This is one of the two best books on cash flow analysis I've seen, alongside Creative Cash Flow Reporting: Uncovering Sustainable Financial Performance . It is well-written, clear and covers all stages of business. An excellent book. Recommended!

Some great practical examples in here and very well organized. Readers can drop-in on sections for a refresher or to focus on specific learning points. On the content: the conventional way of thinking about cash flows isn't as practically useful as it could be. The traditional accounting approach is very retrospective and seems to get bogged down in form rather than function. The author draws on his years of experience to try and change that. He presents a very useful framework to try and re-think the whole point of cash flow data from an analysis perspective. If readers don't adopt his exact template, he provides a sufficient degree of surrounding discussion to provide a foundation for creating ones own. Cash flows are arguably the most significant driver of value creation, yet analyzing them seems to be under-emphasized in practice. By reading this book and working through the exercises, readers will be ahead of the pack.

Not a bad book, well explained starteng from the basics but expensive.

Very helpful book in understanding cash flows. Although analysts may be the desired audience, Jury's book will be of value to me as a business manager.

Good

In the book it's about a new kind of template to reconstruct the real cashflow in a company. There are examples of Nokia & BlackandDecker. But I don't get it how it is constructed. I have used all the numbers in the examples to reconstruct it for myself but I have failed to do it. There is no explanation how this reconstruction is done and with no help from the author it's guessing. On page 63: operating cash margin is 5741 and on page 72 it is 7457 and now explanation for the difference. ........................... how do I have to reconstruct it for myself !!!! Also on page 90: it shows an operating cash margin of 578.2 but how do this number appear. There are a 10K rapport of B&D of an P&L and cash flow statement but how is this number of 578.2 achieved ??? You are left in the dark as a reader

I have read other books addressing cash flow but this one is so superior that I'm compelled to state that there's a clear difference in kind, not just degree, when compared to other texts. The author sets forth in the Introduction (which I strongly encourage all to read online to get a true sense of the scope of the text) his aims which are to instruct the reader in a complete understanding of the cash cycle in any business and to be able to restate those cash flows in a standard template to sweep away inconsistencies and irregularities in reporting so that the actual cash flows are made evident. Topics covered include the working asset cycle, fully worked examples restating both IAS and US GAAP cash flows, proper spreadsheet modeling and risks (the latter a first in any text I'm aware of), understanding cash flows in growth, mature, and declining businesses, ... these are just a few of the insightful chapters I've digested, worked the examples, and enjoyed. The author writes in a lucid, even compelling manner and, given the absolute clarity of the presentation, there's no question he has mastery of accounting, the English language, and pedagogy; one can write obscurely when the topic isn't completely understood but clear, detailed explanations with worked examples are only a result of deep experience in the field. In closing, this is an eminently practical book that deserve not only a place on every practitioner's bookshelf but on their desk as a working guide to cash flow analysis.

This is the by far the best book to understand the subject and to get things going. The diagrams are very helpful for comprehension. The structural presentation is so good that it aids your understanding. Follow the author's guidance as to how to read the book, you would do well to do that. Also, read Creative Cash Flow Reporting: Uncovering Sustainable Financial Performance

Buen libro. Recomendado totalmente, explica desde las bases hasta ejercicios complejos. Ayuda desde el punto educativo hasta profesional en el segmento financiero.

I was surprised with the number of errors that were present in this book - numerical, concpetual, and grammatical (even has misspelled words). The objective of this book was to be the definitive source on analyzing and forecasting cash flows of a business, but the fact that so many errors exist detracts from the book's ability to meet this objective. In my opinion, there are better alternatives than this book if you're attempting to improve your analytical knowledge of cash flow statements.

While there are a lot of books in the market that teach you the philosophy of value investing and strategy, there are very very few that actually guide you in a systematic way to analyze businesses. I've read around 60 investment books in the past seven months, and I would definitely say that this book has to be right at the top of the list in terms of the amount of actual analytical skills that it teaches you to study businesses. In fact, I gained many times more from this book than from McKinsey's or Aswath Damodaran's famous books on valuation (which are worth reading nevertheless). While the book concentrates solely on the cash flow statement, with little attention to the balance sheet or the income statement, I don't think it's a significant drawback considering the fact that 'cash is king'. If this book doesn't deserve a five star, nothing else does. Read it!