Cash Flows Yahoo and Google Essay Example | Topics and Well Written Essays - 500 words

Cash Flows Yahoo and Google - Essay Example Over the period of three years, Google has contributed to the capital expenditure for future expansion Besides Google seems to be active in managing its short term investment and generate significant cash flows. The most significant indicators of the sources of financing activities being generated are the issuance of capital stock by the Google over the period of time. Apart from that Google has been relying on external financing to generate its cash flows from investing activities. On the whole it can be safely assumed that Google has been able to generate very healthy operating cash flows which is in fact one of the ideal indicators for the investors as for as the cash flow generating capability of the company is concerned in long term basis. The major contributor towards generating positive operating cash flows are non-cash items specially depreciation and amortization. Cash flow from Operations has shown reduction in 2006 due to the reduction in net income. Cash Flow from investing activities is negative too because of the heavy capital expenditure being made over the period of three years. Cash Flows from financing have been negative too because of the fact that Yahoo has recalled some of its stocks from the market i.e. repurchased its stock from the open market to lessen the external