Hello Quaile, from your GSK cash flow analysis, the company is in a good financial position. Their sales have been growing tremendously over the past years. For instance, in 2018 financial, strategy, and product highlights, its group sales were worth £40 billion, pharmaceuticals were worth £18 billion, total HIV sales stood at £5billion, and total new respiratory product sales amounted to £3 billion. Net cash flow from all operations stood at £9 billion, while free cash flow amounted to £6 billion. All these figures show significant improvement in cash conversion primarily on working capital. To keep up with the pace, the company has been continuously rebuilding the pharmaceuticals pipeline from 33 to 46 new medicines ( Businesswire, 2020) . These developments now target modulation of the immune system. There has also been significant improvements made in immune-oncology with about 16 assets. It reflects mostly on organic progression, alliance with other companies such as Merck Kraal, Darmstadt, Germany, and what you have mentioned, the acquisition of Tesaro. All these progress that the company has made is seen in the cash flow analysis. The company so far has hired researchers to study on the utilization of AI in making medicines rapidly.
References
GSK. (2019). GSK delivers sales, earnings and cash flow growth in 2018 . (2019, February 6). https://www.gsk.com/en-gb/media/press-releases/gsk-delivers-sales-earnings-and-cash-flow-growth-in-2018/
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Response to David Yurkovich
Hi Yurkovich, I agree with your discussion that cash flow analysis is the best method to analyze the company's financial decision. It is essential to analyze frequently because it offers crucial details about the amount of cash and cash equivalent to a company. The major report states the changes in a firm's cash flow over a particular period. It also helps the company comprehend how much money they need to make and spend and where the cash will come from and how it has been spent. Many investors and shareholders of a firm want to cash out of their investment; they will need information about their receivables and payables. The cash flow statement needs to be audited annually. In the case of your cash flow analysis of Hasbro, it is no doubt that the company is in a good financial position. In the first quarter of 2019, the organisation had about $1.3 billion. The firm also has more than $1.5 billion that revolves around credit facility ( Businesswire, 2020) . Hasbro has been committed in all areas to ensure there is maximum revenue primarily in the United States and Canada.
Reference
Businesswire. (2020). Hasbro reports first quarter 2020 financial results . (2020, April 29). https://www.businesswire.com/news/home/20200429005311/en/Hasbro-Reports-First-Quarter-2020-Financial-Results
Response to Jillian Whitney
Hello Whitney, I agree that you mentioned the importance of cash flow statements in determining the business position. The cash flow statement will help the company to know how the money was spent. For instance, it will highlight the company's inventory on cash and if they extended credit t clients. All these issues will be highlighted in the cash flow statement. The analysis will also help the firm to focus on creating more cash and increasing the revenue. Profits are what make the companies going. Additionally, the investor will be keen on conducting keen diligence on the company's financial position by using a cash flow statement. The analysis will also show the balance sheet changes and assist in conducting the operations, investments, and other financial positions. I concur with you that HanesBrands is in a good financial position. Before the pandemic, the company had strong revenue and profits and improved sales. Global sales have been skyrocketing due to the utilization of platforms such as online, dollar store, and food and drug (MarketScreener, 2020). Since the last quarter, the company saw an increase of 5%.
Reference
MarketScreener. (2020). Hanesbrands Inc . Stock Market Quotes and News: Equities, Indexes, Commodities, Forex on MarketScreener.com. https://www.marketscreener.com/quote/stock/HANESBRANDS-INC-31267/financials/
