These cash return measures, taken over a period of time and compared to industry norms, provide guidance on the enterprise's ability to generate superior future cash flows
from invested funds.
In an attempt to approximate the minimum financial performance that should be achievable over the long term (Fitch's base case), Fitch incorporated somewhat conservative assumptions that reduce cash flows
by approximately $23 million in 2007 increasing to a reduction of $80 million by 2013.
19, Reporting Changes in Financial Position, and requires a statement of cash flows
as part of a full set of financial statements for all business enterprises in place of the statement of changes in financial position.
95, Statement of Cash Flows
, specifies what cash flow
information companies must report and reduces diversity in reporting.
statements began appearing in corporate reports almost 30 years ago, after FASB issued Statement of Financial Accounting Standards (SFAS) 95, Statement of Cash Flows
, in 1987.
First, increase the amount of cash flows
expected at any point in time.
Since each projected lifetime produces a unique set of future cash flows
, the distribution of lifetimes translates into a distribution of present values of cash flows
or settlement prices.
Negative cash flows
can create a need for capital calls.
SFAS 121 requires the use of both undiscounted future cash flows
and fair values to recognize and measure impairment.
Growth must be profitable to be of value, profitable enough to generate healthy free cash flows
- that is, the money left over after subtracting expenses, taxes, and capital investment from revenues.
The expected amounts and timing of a set of future cash flows
that constitutes an asset or a liability, such as those from a bond.
AEI's operating assets have a relatively stable base of revenues and cash flows
as more than 90% of its revenues are either from contracted Power Purchase Agreements (PPAs) or from regulated energy businesses.