Question

Examine the latest available Annual Cash Flow Statements of Nemaska Lithium corporation and use the information...

Examine the latest available Annual Cash Flow Statements of Nemaska Lithium corporation and use the information provided in the Cash Flow Statement to create an analysis of whether to invest or not invest in the company's stock.

Make sure your discussion includes how the corporation has performed in the 3 sections (Operating, Investing, Financing) of the Cash Flow Statement.

Homework Answers

Answer #1

After looking to cashflow of Nemaska Lithium corporation one can easily conclude that we should not invest in the stock.

Company is not generating positive cashflow from operation and investing, that tells that company is not doing good and making an progress. Not only that loss from these activities are increasing in past 5 year.

To overcome this loss company is taking more loans and having positive cashflow from financing which will increase the further overhead as financing cost in coming year.

At last free cash flow to company is also decreasing in past 5 years. So one should stay away from this stock.

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