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Analysis of the investment company

Analysis of the investment companyThe analysis of the activities of the investment company will be discussed in this article. This section of the company's cash flow report shows how the company spends its money to build long-term assets, such as new buildings or other new acquisitions, including large purchases of real estate, equipment and other companies. This section also contains information on the sale by the company of large assets or the purchase of shares of other companies. Monitoring investment activity allows investors to get an idea of ​​what actions related to large long-term capital planning took place during the reporting period.


Conclusion: this section of the company's cash flow statement reflects the cumulative cash flow from the company's investment activities. In tab. 6.12 presents a comparison of total cash flows from the investment activities of the companies Note Depot and Lowe ’for three consecutive years. The data given in table.6.12, indicate that both companies have invested significant cash. If you closely followed the news regarding these two leaders in the retail sector of household goods and household goods, then you probably know that during the reporting period they increased the number of their stores throughout the country, trying to capture the largest possible market share.


A balance sheet is a kind of snapshot of a company's assets and debentures at a particular point in time. This is its difference from the profit and loss statement, which contains information on the results of the main production activities of the company for a certain period of time. The balance sheet consists of the following three sections:


"Assets"; contains detailed information about everything that the respective company owns;

Debentures"; provides detailed information about the company's debt obligations or any other claims to the assets of the company by its creditors;

Share capital; All claims from the owners or investors of this company are listed.

The name The balance sheet is explained by the fact that the total assets of the company are considered to be consistent with the aggregate claims for these assets.


Assets and debt obligations of the company are listed in the balance sheet according to their liquidity, i.e. in accordance with how quickly and easily they can be converted into money. Assets or debentures that are more liquid appear in this list first, and those that are more difficult to convert into money are located in this list all the farther from its start. The section "Assets" is divided into current assets and long-term assets. The same applies to the section "Debt obligations", which is also divided into current debt obligations and long-term debt obligations.


Current assets include money, as well as assets that can be converted quickly and easily into cash. Long-term assets include such types of property as buildings, land and equipment. Similarly, current debt obligations include any claims for assets that are due within the next 12 months, and long-term debt represent claims for assets that are subject to satisfaction during the period,exceeding the next 12 months.


Participation reporting includes outstanding and / or ordinary shares in circulation and retained earnings. Undistributed profit reflects the profit reinvested in the company.


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