Horizontal or trend analysis is a financial statement analysis that shows the unexpected increases and decreases in the items of the stamen. This analysis compares the changes in amount from the current year with the previous year to give a percentage increase or decrease. A trend analysis of the cash flow statement for AB InBev and Carlsberg for the year 2015 through 2017 is explained below.
AB InBev Analysis
From the calculations below, the base year for the analysis is 2015. AB InBev shows an increase in most of its cash flow items.
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AB InBev Statement of cash flows 2015, 2016 and 2017 |
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| In Million US Dollars |
AB InBev 2015 |
AB InBev 2016 |
AB InBev 2017 |
2016 Trend Changes % |
2017 Trend Changes % |
| Operating profit |
9,867 |
2,769 |
9,183 |
-71.94% |
-6.93% |
| Adjustment for depreciation and amortization | |||||
| Adjustment for impairment losses | |||||
| Interest, taxes and non-cash items included in profit |
6,859 |
13,572 |
12,484 |
97.87% |
82.01% |
| Adjustment for other non-cash items | |||||
| Change in working capital |
1,786 |
173 |
219 |
-90.31% |
-87.74% |
| Pension contribution and use of provisions |
-449 |
-470 |
-616 |
4.68% |
37.19% |
| Restructuring costs paid | |||||
| Interest and taxes paid/received |
-3,964 |
-5,977 |
-5,982 |
50.78% |
50.91% |
| Dividends received |
22 |
43 |
142 |
95.45% |
545.45% |
| Cash flow from operating activities |
14,121 |
10,110 |
15,430 |
-28.40% |
9.27% |
| Cash flow from investing activities |
-4,930 |
-60,077 |
7,854 |
1118.60% |
-259.31% |
| Cash flow from financing activities |
-9,281 |
50,731 |
-21,004 |
-646.61% |
126.31% |
| Cash and cash flow equivalents in the end of the year |
-90 |
764 |
2,280 |
-948.89% |
-2633.33% |
In 2016, the highest increase was the cash flow from investing activities. AB, in 2015, recorder a low outflow in cash from these activities but in 2016 the cash out flow was even higher. The cash flow from financing activities also increased tremendously compared to 2017. The company also had a great percentage increase in dividends received in 2016 and 2017. Overall, the trend for the company cash flow has been an increase. The trend in the three years fluctuates a lot hence no determinable upward or downward trend.
Carlsberg Analysis
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Carlsberg Statement of cash flows 2015, 2016 and 2017 |
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| In Million US Dollars |
Carlsberg 2015 |
Carlsberg 2016 |
Carlsberg 2017 |
2016 Trend Changes % |
2017 Trend Changes % |
| Operating profit |
1,269 |
1,237 |
1,331 |
-2.51% |
4.95% |
| Adjustment for depreciation and amortization |
701 |
711 |
687 |
1.45% |
-1.99% |
| Adjustment for impairment losses |
12 |
3 |
19 |
-76.83% |
53.66% |
| Interest, taxes and non-cash items included in profit | |||||
| Adjustment for other non-cash items |
-56 |
-62 |
-42 |
9.63% |
-25.40% |
| Change in working capital |
277 |
-16 |
185 |
-105.69% |
-33.01% |
| Pension contribution and use of provisions | |||||
| Restructuring costs paid |
-88 |
-61 |
-55 |
-30.55% |
-37.88% |
| Interest and taxes paid/received |
-594 |
-413 |
-351 |
-30.39% |
-40.83% |
| Dividends received | |||||
| Cash flow from operating activities |
1,521 |
1,399 |
1,775 |
-8.00% |
16.71% |
| Cash flow from investing activities |
-393 |
-107 |
-473 |
-72.77% |
20.47% |
| Cash flow from financing activities |
-986 |
-1,381 |
-1,149 |
40.00% |
16.50% |
| Cash and cash flow equivalents in the end of the year |
453 |
352 |
468 |
-22.25% |
3.31% |
Carlsberg cash flow statement shows an upward trend in cash flow items between 2016 and 2017. The company recorded a decrease in operating profit by 2.51% in 2016 and an increase by 4.95% in 2017. The cash flow from operating activities also decreased in 2016 by 8% while increasing in 2017 by 16.71%. The cash flow from investing activities also decreased in 2016 by 72.77% and increased in 2017 by 20.47%. The cash flow from financing activities increased within the three years. Overall, the company cash flow increased between 2015 and 2017.
