Positive Cash Flows Despite Losses & Capital Raising Focus Questions

part 1:

first, read these two cases

Cash Flow Statements and Analysis

The Statement of Income and Cash Flows (pp. 15-23)

second, answer these

1. What are the key areas of difference between the 3 companies’ cash flow statements?
2. What do you suspect may be drivers of these differences?
3. What elements of strategy of the business, if any, can be hypothesized based on observations?
4. Based on evidence, if you had to make an educated guess, are there any companies and/or sectors that come to mind that fit the cash flow profiles shared?
5. During the height of the COVID pandemic, which company, all things being considered, do you think would have been the most resilient and which do you think may be most vulnerable? Why?

part 2:

first, read these two case

Signet Jewelers: Assessing Customer Financing Risk

Analyzing Financial Statements

second, answer these

1. What are the key similarities and differences in the business models of Signet, Tiffany and Blue Nile? How are these factors reflected in their financial ratios? An Excel copy of the ratios is enclosed on Canvas in the spreadsheet “Signet Exhibits and Ratios.”
2. Which of the three companies is performing better? Why?
3. How do you assess the performance of Signet’s in-house financing program?
4. Do you think Signet should continue to offer an in-house financing program? What are the risks involved?
5. Do you agree with Cohode’s critique of Signet’s bad debt expense policy?