Green Mountain Coffee Roasters Recent Statement Of Cash Flows
Introduction
Green Mountain Coffee Roasters is a company that specializes in coffee and tea. The company has been in operation for over 35 years and has grown to become one of the largest coffee roasters in the world. Recently, the company released its statement of cash flows which provides insight into its financial performance. In this article, we will take a closer look at the statement of cash flows and what it means for Green Mountain Coffee Roasters.
What is a Statement of Cash Flows?
A statement of cash flows is a financial statement that provides information about the cash inflows and outflows of a company. It shows how a company generates cash and how it uses that cash. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities.
Operating Activities
The operating activities section of the statement of cash flows shows the cash inflows and outflows that are directly related to a company's core business operations. For Green Mountain Coffee Roasters, this would include cash received from the sale of coffee and tea products, as well as cash paid for the purchase of raw materials and other operating expenses.
Investing Activities
The investing activities section of the statement of cash flows shows the cash inflows and outflows that are related to a company's investments in property, plant, and equipment. For Green Mountain Coffee Roasters, this would include cash paid for the purchase of new coffee roasting equipment or the construction of new facilities.
Financing Activities
The financing activities section of the statement of cash flows shows the cash inflows and outflows that are related to a company's financing activities. This would include cash received from issuing debt or equity, as well as cash paid out for dividends or debt repayment.
Green Mountain Coffee Roasters Statement of Cash Flows
Now that we have a better understanding of what a statement of cash flows is, let's take a look at Green Mountain Coffee Roasters' statement of cash flows. In the operating activities section, the company reported net cash provided by operating activities of $1.3 billion. This was an increase from the previous year, which saw net cash provided by operating activities of $1.1 billion.
In the investing activities section, the company reported net cash used in investing activities of $319 million. This was a decrease from the previous year, which saw net cash used in investing activities of $347 million. The decrease was due to a reduction in capital expenditures related to the construction of new facilities.
In the financing activities section, the company reported net cash used in financing activities of $1.1 billion. This was an increase from the previous year, which saw net cash used in financing activities of $767 million. The increase was due to an increase in dividends paid to shareholders.
What Does This Mean?
Overall, Green Mountain Coffee Roasters' statement of cash flows shows that the company is generating strong cash flows from its core business operations. However, the company is also investing heavily in new equipment and facilities, which is reducing its overall cash balance. Additionally, the company is paying out more in dividends to shareholders, which is reducing its overall cash balance even further.
Conclusion
The statement of cash flows is an important financial statement that provides insight into a company's financial performance. Green Mountain Coffee Roasters' statement of cash flows shows that the company is generating strong cash flows from its core business operations, but is also investing heavily in new equipment and facilities. Additionally, the company is paying out more in dividends to shareholders, which is reducing its overall cash balance. As a result, investors should carefully consider this information before making any investment decisions.