Professional Documents
Culture Documents
Statement
Start Up
Growth
Maturit
y
Decline
CFO
CFI
CFF
Negligible Sales
Negative
Highly Negative
Highly Positive
Highly Negative
Higher Credit to
Customers
Capacity Building
and Expansion
Higher Discounts
High Funding
Needed for
Operations and
Expansion
No Proceeds from
Sale of Assets
Higher Inventory
Buildup
High Costs due to
inefficiencies and
low scale
No Dividends and
Interest
CFO
CFI
CFF
Sales Picking Up
Less Negative/
Positive
Negative
Positive
Continuous
Expansion and
Capacity Buildup
Positive
Discounts Stabilizing
Higher Inventory
Buildup & Credit to
Customers
Some Credit from
Suppliers
Interest Cost
No Dividend as
funds are reinvested
CFO
CFI
CFF
Positive
Highly Positive
Slightly Negative
Negative
No additional
avenue for
Investment
Repayment of Loans
Stability in Working
Capital Assets like
Receivables and
Inventory
Inflation Adjusted
Investment in Assets
Higher Dividends
Reducing/ Stabilizing
Interest
Buy Back of Shares
CFO
CFI
CFF
Positive
Negative
Sale of Redundant
Capacity and Assets
Repayment of Loans
Working Capital
Assets Reducing
High Tax Outflows as
Capital Investments
go down and Assets
are sold
Cost inefficiencies
due to reducing
scale
Higher Dividends
Concentration of
Manufacturing
Facilities may
improve margins
Reducing Interest
Buy Back of Shares
CFO
CFI
CFF
Negative
Most likely to be
negative
Positive
Negative
Repayment of Loans
Even if positive,
mainly because of
Depreciation,
Reduction in
Working Capital
Assets
False Capitalization
of Expenses
Almost no dividend
Capital funding
drying up
2000
1000
0
Oct-06
Feb-08
Jul-09
Nov-10
Apr-12
Aug-13
Dec-14
-1000
-2000
-3000
-4000
May-16
60000
40000
20000
0
2010
-20000
-40000
-60000
2012
2013
2014
6000
4000
2000
0
2010
-2000
-4000
-6000
2012
2013
2014
200
100
0
2010
-100
-200
-300
2011
2012
2013
2014
2000
1500
1000
500
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
150.00
100.00
50.00
0.00
38047
-50.00
38412
39873
40969
38777
40238
39142
39508
40603
41334
41699
CFO
150.00
100.00
50.00
0.00
38047
-50.00
-100.00
38412
39873
40969
38777
40238
39142
39508
40603
41334
41699
38412
39873
40969
38777
40238
39142
39508
40603
41334
41699
-50.00
-100.00
-150.00
-200.00
-250.00
-300.00
-350.00
-400.00
-450.00
CFI
CFF
38412
39873
40969
38777
40238
39142
39508
40603
41334
41699
2006
2007
2008
2009
2010
2011
2012
2013
2014
200
150
100
50
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
38412
39873
40969
38777
40238
39142
39508
40603
41334
41699
-5
-10
-15
-20
-25
-30
-35
Dividends