It determines the ability of the company and each division to generate cash flows fromoperations
“Cash is king” for some analysts. We could see how is the cash for investments being allocated
How is the company financing their new capital expenditures, stocks or debt.A breakdown by division is very useful because
An analysis of the performance of each division is possible
Cash generated by division is a better metric of operational efficiency.I would use cash flow statements by divisions to
Determine if cash flows backup the current measurement of ROA
Find out which division is investing in new equipment and how
Compare each other division cash flows. As I mention later, I don’t think Professional
Services is being fairly compare with the other two divisions