Net cash provided from operation activities:
In 2009, net cash generated from operation activities is 89,377,000 RM but in 2008, net cash generated from operation activities is 29,897,000 RM which indicates net cash provided from operation activities is increased from 2008 to 2009 and it can be good sign. Because the most important category of cash flow is operating activity and it reflects the day-to-day operations that determine the future of an organization .cash flow from operating activities should be main source of cash.
Net cash used in investing activities:
Net cash used in investing activities has increased from 2008 to 2009.for 2008,this amount is 14,756,000 RM but for 2009,this amount is 29,436,000 which indicates company has gain more long-term asset in 2009.
Net cash used in financing activities:
For 2009, this amount is 42,001,000 RM and for 2008 this amount is 8,616,000 RM. it indicates that in 2009, company paid more interest and dividend in comparison with 2008. Generally, cash and cash equivalent has increased from 2008 to 2009 by 17,940,000 RM. Cash flow of Dutch Lady Milk Berhad is healthy because main source of cash is operation activity and investing activities did not create cash which indicate company did not sell of its long-term assets.
Analysis cash flow of Dutch lady milk industries Berhad in 2008 and 2009
Mohammad Hashemi Joo