Analysis of cash flow statement with Drägerwerk AG as an example

Abstract

Usually, the normal development of the enterprise because of the daily business transactions constantly, need to estimate the cash flow of the enterprise, so that the enterprise decision-makers grasp the current development of the enterprise, real-time evaluation of the enterprise, so as to make decisions for the enterprise. According to International Accounting Standard (IAS) 7, the cash flow statement reflects the addition and subtraction of cash flow. The main purpose of cash flow statement is to provide information about the financial situation of an enterprise, including the source and use of funds, for decision makers and investors of an enterprise. Cash flow statement is an important index to measure the sustainable development of enterprises and the main factor to measure the financial strength of enterprises. As an integral part of financial statements, cash flow statement can reflect the net assets of enterprises with fair value, and show the operating results and financial status of enterprises through flow changes. It provides a reference for enterprises to test whether they can fulfill their payment obligations, pay dividends and pay dividends to investors. In this context, cash flow statement plays an increasingly important role in the development of enterprises. In order to make a better economic decision, we must study the cash flow statement in an all-round way. Firstly, it studies what information can be disclosed in the cash flow statement. The second research problem discusses the direct method and indirect method for calculating cash flow. Considering that cash flow statement is an important financial statement of an enterprise, any enterprise needs cash flow statement to help enterprise management and investors make decisions. Therefore, the third problem is the specific calculation of cash flow statement and the matters needing attention in the application process.