FREIGHT MANAGEMENT HOLDINGS BHD

Cash and cash equivalents at end of the financial year 2020 is RM 49,475. Its better than previous year
2019 its RM 37,599.00

CJ CENTURY LOGISTICS HOLDINGS BERHAD

Cash and cash equivalents at end of year 2020 is RM 38,931. Its better than previous year 2019 its RM
20,947.

Definition of 'Cash Flow'

Definition: The amount of cash or cash-equivalent which the company receives or gives out by the
way of payment(s) to creditors is known as cash flow. Cash flow analysis is often used to analyse the
liquidity position of the company. It gives a snapshot of the amount of cash coming into the business,
from where, and amount flowing out.

Description: As discussed cash flows can either be positive or negative. It is calculated by subtracting
the cash balance at the beginning of a period which is also known as opening balance, form the cash
balance at the end of the period (could be a month, quarter or a year) or the closing balance.

If the difference is positive, it means you have more cash at the end of a given period. If the difference
is negative it means that you have less amount of cash at the end of a given period when compared
with the opening balance at the starting of a period.

To analyse where the cash is coming from and going out, cash flow statements are prepared. It has
three main categories – operating cash flow which includes day-to-day transactions, investing cash
flow which includes transactions which are done for expansion purpose, and financing cash flow
which include transactions relating to the amount of dividend paid out to stockholders.

However, the level of cash flow is not an ideal metric to analyse a company when making an
investment decision. A Company’s balance sheet as well as income statements should be studied
carefully to come to a conclusion.

Cash level might be increasing for a company because it might have sold some of its assets, but that
doesn’t mean the liquidity is improving. If the company has sold off some of its assets to pay off debt
then this is a negative sign and should be investigated further for more clarification.

What Is Positive Cash Flow and Negative Net Income?

Cash flow is the net amount of cash and cash-equivalents being transacted in and out of a company in
a given period. If a company has positive cash flow, the company's liquid assets are increasing. Net
income is the profit a company has earned, or the income that's remaining, after all expenses have
been deducted. Net income is commonly referred to as the bottom line since it sits at the bottom of
the income statement. Yes, there are times when a company can have positive cash flow while
reporting negative net income. But first, we'll need to explore how cash flow and net income relate to
each other.

KEY TAKEAWAYS:
It is possible for a company to have positive cash flow while reporting negative net income.
If net income is positive, the company is liquid.
If a company has positive cash flow, it means the company's liquid assets are increasing.
A company can post a net loss for a period but receive enough cash from borrowing or other cash
inflows to offset the loss and create positive cash flow. 
Understanding Net Income and Cash Flow
Net income is calculated by subtracting the costs of doing business including expenses,
taxes, depreciation, and interest on debt from total revenue. If net income is positive, the company is
liquid and has a higher probability of paying off its debts, paying dividends to shareholders, and
paying its operating expenses. 
Cash flow is reported on the cash flow statement, which shows where cash is being received and how
cash is being spent. Cash flow is the net amount of cash and cash-equivalents being transacted in and
out of a company in a given period. If a company has positive cash flow, it means the company's liquid
assets are increasing.

Real World Example of Positive Cash Flow and Negative Net Income 

Below is the cash flow statement for JC Penney Inc. (JCP) as of May 5, 2018. 
Net income is carried over from the income statement and is the starting point for calculating cash
flow. From the net income amount, cash transactions for the period are either added or subtracted. 
JC Penney had a negative net income (or loss) for the period of $78 million, highlighted in red. 
However, at the bottom of the statement, highlighted in green, the company posted a positive cash
position of $181 million. 
How can that be? 
We can see, highlighted in blue, that JC Penney received an influx of cash from borrowings of a credit
facility along with additional cash from new long-term debt. 
In other words, the company still posted a loss for the period but received enough cash from
borrowing to offset the loss and create positive cash flow. 

Remember that the cash flow statement only shows a company's cash position. It's not a measure of
profitability. A company can still post a loss in its daily operations but have cash available or cash
inflows due to various circumstances.

Depreciation
Depreciation is an accounting method that allocates the cost of a fixed asset over its useful life.
Depreciation accounts for declines in the value of the asset and spreads the expense of it over the
years of the useful life of that asset. Depreciation helps companies avoid taking a huge deduction in
the year the asset is purchased, allowing companies to earn revenue from the asset. 
Net income is calculated by deducting a company's expenses, and depreciation is one of those
expenses. However, since depreciation is an accounting measure, it is not an outlay of cash. As a
result, depreciation expense is added back into the cash flow statement when calculating the cash
flow of a company.
If a company has a net loss for the period and has a large depreciation expense amount added back
into the cash flow statement, the company could record positive cash flow, while
simultaneously recording a loss for the period. 
Sale of an Asset
If a company sells an asset or a portion of the company to raise capital, the proceeds from the sale
would be an addition to cash for the period. As a result, a company could have a net loss while
recording positive cash flow from the sale of the asset if the asset's value exceeded the loss for the
period.

Accrued Expenses
Accrued expenses occur when a company records an expense for purchasing an asset but does not
have to pay for it until the next period. Expenses are recorded at the time they are incurred, not
when they are paid. For example, a company might record a substantial expense in Q4 but not have a
cash outlay until the next year when the invoice is paid. As a result, the company might post a net loss
in Q4 while maintaining a positive cash position.
When analyzing a company's financial statements, it is important to review all aspects of the
company's financial position, including net income and cash flow. Only through a comprehensive
analysis of all the financial statements can investors make an informed decision.