A Comparative Study on Cash Flow Statements of ITC Ltd and HUL

The Statement of Cash Flows or Cash Flow Statements prepared on the cash-basis accounting is a crucial part of company?s financial statements. It provides complete information about cash inflows and cash outflows of a company in three activities-operating, investing and financing for a particular period of time. In this paper, a comparative analysis of cash flow statements of ITC Ltd and HUL for a recent three-year period has been undertaken. Statistical techniques have been used to analyze the cash flow statements of selected companies. The findings of the study suggest that both the companies have same trends for operating, investing and financing activities over the selected period and ITC Ltd has better consistency than HUL in generating cash flows. The study concluded that ITC Ltd is performing better than HUL.