Financial Statement Analysis of BCE Company

Running head: FINANCIAL STATEMENT ANALYSIS OF BCE COMPANY
Financial Statement Analysis of BCE Company
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1FINANCIAL STATEMENT ANALYSIS OF BCE COMPANY
Table of Contents
Analysis of Cash Flows of BCE Company..........................................................................2
References............................................................................................................................4
Appendix..............................................................................................................................5

2FINANCIAL STATEMENT ANALYSIS OF BCE COMPANY
Analysis of Cash Flows of BCE Company
Cash flow statement analysis of BCE Company is carried out by taking into account the
parent firm, Bell Company for the past three years. Such analysis is focused on evaluating the
cash flow performance of the company and explaining the ways in which the company is
performing in a better manner. It is gathered from the analysis that the company is generating
enough cash from its operating, financing and investing activities. In these major areas, all the
vital aspects of the business transactions are covered. For instance, it indicates the ways in which
BCE Company finances and purchases all its assets rather than just indicating the amount. It is
also observed that the cash and cash equivalents have increased from the year 2014 to 2016;
however, they have fallen significantly in 2015.
However, cash flow from the financing activities is observed to decrease and indicate a
negative change percentage of 13.40% in 2015 and 13.91% in 2016. Capital expenditures of the
company are observed to increase over the years from 2014 to 2016 with a percentage change of
4%. It is also observed from the cash flow statement of BCE Company that in the year 2016, the
operating activities cash flow increased by $369 million in contrast to the year 2015. This
happened mainly because of the reason of higher adjusted EBITDA, decreased acquisition along
with several costs paid.
In 2016, operating activities cash flows of BCE Company increased from $369 million in
contrast to 2015. This is basically because of highly adjusted EBITDA, decreased acquisition
along with several costs paid. This is partially offset by increased voluntary DB pension plan
contribution conducted in 2016. Free cash flow hat is present within the BCE’s common
shareholders increased by $227 million in 2016 because of increased cash flows from operating