Analysis of Statements of Cash Flows to Assess Company Performance

Cash flow of an operational activity is cash flow obtained from sales, accounts receivable revenue, payment for trade debt, goods purchasing and other costs. Company’s value is the price that will be paid by purchaser when the company is sold. Cash is one of the most important assets in company that has an important position to finance the operations of the company. The cash flow statement contains information about the cash position is actually happening in the operations of the company. By using the ratio of cash flow, it can be analyzed how the development of the company's financial performance from year to year. This research analyze that the factors that cause a decrease in the Flow Ratio Operational Cash (AKO) occurred due to an increase in the amount of current debt, meanwhile the ratio of cash flows to interest (CKB) has decreased caused by an increase in the amount of interest and the amount of taxes, Cash Flow Ratio to Capital Expenditure (PM) decreased due to factors increase in the amount of capital expenditure but not followed by an increase total operating cash flow, Cash Flow Ratio to Total Debt (TH) experienced The decrease was caused by the increasing factor of the company's total debt but not accompanied by operating cash flow and Cash Flow to Profit Ratio Net has decreased due to the decrease in net profit and also decreased operating cash flow. The purpose of this study to determine the use of the cash flow statement in assessing the financial performance The procedure of data collecting used by the author is library research and internet browsing.