Hydrogenic's Cash Flow Statement

In analyzing the cash flow statement, we will see how the changes in the balance sheet and income affected Hydrogenics cash and cash equivalents from 2012 to 2013. This statement will not only reveal the cash activity for the company, but it is broken down by operating, investing, and financing activities using the indirect method. In doing this, the true cash inflow and outflow of the company is revealed, and a potential investor will know how much cash the company has, or does not have, on hand to work with.

We will begin in analyzing the cash flow from operating activities section of the statement of cash flows. Right from the start, the first, and most obvious note, is the total net cash used for operating activities. This number is

This section describes the investments that Hydrogenics made in 2013. Disposal of property, plant, and equipment shows a $0 balance which means that the company did not make a profit from the sale of assets, they had a loss, which was recorded in operating activities section already. They did invest in property, plant, and equipment which is why this amount increased by 45% from 2012 to 2013. This means that Hydrogenics is investing in assets that will be an advantage to future operations, and hopefully help increase profits. The last item noted in the investing section of the cash flow statement is the purchase of intangible assets. Note 7 to the financial statements describes intangibles as being the companys computer software systems (Hydrogenics Corp. 2013). This account had a minimal increase of 6%. In the analysis of this section, we can see that Hydrogenics is investing in the company by purchasing assets. But how are they acquiring these assets? We will now move on to the financing section of the cash flow to see how they are investing in the company since their cash shown in the operating activities section is at such a

This section is where we realize how the company is surviving, or making ends meet. Each one of the accounts in this section increases from 2012 to 2013 which affects the total cash provided, except for proceeds and repayment of operating borrowings accounts. These two accounts pretty much wash since Hydrogenics first borrowered money, $1412 thousand for operating expenses, and then paid that exact amount right back with in the same year. Note 11 to the financial statements illustrates the increase in repayable government contributions which increased by $85 thousand but also a long- term debt held with Province of Ontario’s Ministry of Economic Development and Trade, Strategic Jobs and Investment Fund (Hydrogenics, Corp. 2013). This long- term debt increased by $161 thousand. This is a draw account that the company can use to make draws when cash is needed. The most affected account though in this section of the cash flow is the common shares issued and warrants exercised account. As explained in the previous income statement analysis, warrants were issued to raise capital and then common shares were issued after the company signed an agreement with CommScope. This gave the company an increase in cash of $2,102 thousand dollars. By analyzing this section we see that Hydrogenics is financing all of its operating and investing