聯(lián)想公司財(cái)務(wù)報(bào)表最終版

STUDENTNAMES:STUDENTNUMBERS:1.駱桐學(xué)號(hào)：201012100202152.李靈俐學(xué)號(hào)：201012100202083.賴玉琳學(xué)號(hào)：201012100202064.黨亞男學(xué)號(hào)：20101210020216TOPIC:FinancialAnalysisofLENOVOMARK(Max20):PoorSatisfactoryExcellentResearchskillsQualityofsourcesQuality,breadthanddepthofresearchIdentificationofproblems/challengesandtheirimpactsArgumentsarelogicalandwellsupportedbyfactsandtheoryApplicationoftheoryDeliveryskills&styleCommunicateideasandopinionsclearlyandcoherentlyUseofappropriatetechniquesStructure,format,consistencyPresentinaprofessionalandconfidentmannerBewithinthetimelimit(max25min.)CONTENT1.TOC\o"1-3"\h\u1284Companyintroductionandindustryanalysis 2312591.1CompanyProfile 2128341.1.1CompanyIntroduction 2150601.1.2LENOVOmanagement 2272271.2Externalenvironmentalanalysis 3110401.2.1IndustryIntroduction（Mainbusinessoftheindustry） 3138801.2.2MajorCompetitorsintheindustry 3149511.2.3Industry’srecentfinancialperformance 6216001.2.4Industry’sfuture 736071.3InternalEnvironmentAnalysis 862691.3.1financialperformance 8100671.3.2Productionstructure 9129711.3.3MarketShare 10254172.Accountinganalysis 11109902.1IndependenceofexternalAuditor 1149142.2Internalcontrols 11311662.3Accountingstandard 1144153.Financialanalysis 13117063.1ProfitabilityAnalysis 1387083.1.1Returnoninvestment. 13204573.1.2Operatingperformance. 14118053.1.3Marketmeasures. 158403.2Operatingcapacityanalysis 16322923.3solvencyanalysis 173633.3.1Short-termsolvency 17131063.3.2Long-termsolvency 18259783.4CashflowAnalysis 19185553.4.1.Cashflowstructureanalysis: 19327303.4.2Cashflowfinancialratiosanalysis: 2137884.FutureProspects 221.Companyintroductionandindustryanalysis1.1CompanyProfile1.1.1CompanyIntroductionLenovoisaUS$30billionpersonaltechnologycompanyandthesecondlargestPCcompanyintheworld,servingcustomersinmorethan160countries.DedicatedtobuildingexceptionallyengineeredPCsandmobileinternetdevices,Lenovo’sbusinessisbuiltonproductinnovation,ahighlyefficientglobalsupplychainandstrongstrategicexecution.ItsproductlinesincludelegendaryThink-brandedcommercialPCsandidea-brandedconsumerPCs,aswellasservers,workstations,andafamilyofmobileinternetdevices,includingtabletsandsmartphones.LenovohasmajorresearchcentersinYamato,Japan;Beijing,ShanghaiandShenzhen,China;andRaleigh,NorthCarolina.1.1.2LENOVOmanagementYANGYUANQINGChairman&ChiefExecutiveOfficerHEZHIQIANGSeniorVicePresidentandChiefTechnologyOfficerPETERD.HORTENSIUSSeniorVicePresidentandPresidentofProductGroupGAINFRANCOLANCISeniorVicePresidentandPresidentofEMEALIUJUNSeniorVicePresidentandPresidentofMobileInternetandDigitalHomeBusinessGroupQIAOJIANSeniorVicePresident,HumanResourcesGERRYSMITHSeniorVicePresident,GlobalSupplyChainMILKOVANDUIJLSeniorVicePresidentandPresidentofAPLAWONGWAIMINGSeniorVicePresidentandChiefFinancialOfficerChairman&ChiefExecutiveOfficer1.2Externalenvironmentalanalysis1.2.1IndustryIntroduction（Mainbusinessoftheindustry）PCindustryPC,personalcomputer,derivesfromIBM'sfirstdesktopcomputertypePCin1981.ItReferstoacomputerwhichcanworkingindependentlyandtocompleteaspecificfunction.Today,pcisreferringtoallofthepersonalcomputer,suchasdesktopcomputer,laptop,orwhichcompatiblewithIBM'ssystem,etc.MIDindustryMID,MobileInternetDevice,Anewkindofinternetterminal,Biggerthanasmartphone,smallerthanlaptops.theconceptofmidisexpoundedbyIntel,inApril2007.AccordingtoIntel,midisatoppocketcomputerwhichcanimprovehigh-endcustomers’efficiency,meetthedemandofsurftheInternetanytimeandanywhere,withthecomfort,enjoyPCforalongtimelikesurfingtheInternetandsoon.1.2.2MajorCompetitorsintheindustryCompetitorsinPCindustryFirst,let’slooksomepicturesaboutThePCindustryinformation.Itisthusclearthat,lenovohasmanypowerfulcompetitorsinPCindustry.everybrandhasitsstrengthsanLoyalconsumers，theyalsohasmanyweakness.BRANDSTRENGTHSWEAKNESSHPClearProductpositioningMostcompleteproductlineandmarketsegmentLeadingtechnologyChinesemarketcompetitivenessHighcostDellDirectBusinessModelZeroinventorycostreductionDirectBusinessModelEmergingMarketsAcerGrouphumanisticcarePriceAdvantagecompetitivenessAsusThehighqualityDeepunderstandingofthecustomermarketsharepriceCompetitorsinMIDindustryIntermsofmobileInternetindustry,AppleoccupiedhalfofthemarketsharerelyonTheuniquestyleoftheleaderandrevolutionaryinnovationproduct,whichmakestherestofthebrandhavetobeMorecompetitive.so,lenovehasapuzzlethathowtostandoutfromethecrowd.Aboveislenovocompanyfinancialstatementanalysisdatain2012,wecanseethatintermsoftheChinesemarket,androidoccupiesmoremarketshare,atthesametime,lenovocompany'stabletcomputersaleshaveatremendousgrowth.1.2.3Industry’srecentfinancialperformanceForeignbrandscomputerusetheadvantageofpicegrabdomesticmarket.lenovohasalwaysbeentheLeaderofhome-madecomputer,but,sinceHPenterChinamarket,ithasgrabmuchofmarketshare.ThegrabofforeignbrandinChinamarkethasmakeagreatimpactfordomesticPCmarket.ThecomputerindustryprofitfallingsharplyDuetothedevelopmentofinformationtechnology,moreandmorenewcompetitorsswarmintothemarket.alongwiththeincreaseofthedemandforcomputer,itspriceisalsomoreandmorelow.ThecomputermarketprofitisContinuouslyreduce.AfurtherrefinementofPCmarketAlongwiththedevelopmentofinformationsociety,thedemandofcomputerismoreandmoredifferent.so,manycomputerproducersdetrusionprofessionalcomputeraccordingtodifferentdemandandindustrialcharacteristics,suchasTaxcomputer,Securitiescomputer,Educationcomputerandsoon.LaptopsoccupypcmarketInthedomesticPCmarket,themarketshareofdesktopsoccupiedisgraduallydecline,laptopbecomemainfactorthatdrivesthedomesticPCmarketdevelopment.1.2.4Industry’sfutureAtpresent,moreandmoreusersnolongerbuyPCinsteadofusingthetabletandsmartphonetomeettheirneeds.AccordingtoIDC,anewreport,in2013,GlobalPCshipmentswilldropby7.8%·TabletPCshipmentscontinuetogrow·Consumersbegintopayattentiontothesmallscreensize·Pricesfallingboostdemandfortablet·PCsalescontinuetoslide·BYODalsobringsimpactonPCsalesIDC,pointsoutthattheriseofBYOD(bringtheirownequipment)worksmeansthatemployeesintheenterprisetousetheirownportabledevices,ratherthanthecompanyPC,thiswillalsobringcertainimpactonPCsales.1.3InternalEnvironmentAnalysis1.3.1financialperformanceFiscalyear2011/12wasayearofrecordsforLenovo.Withthe“ProtectandAttack”strategydrivingstrongexecution,Lenovocontinuedtooutperformthemarketswithbalanced,stronggrowthinallgeographicsegmentscoveringChina,EmergingMarkets(excludingChina)andMatureMarkets,aswellasinallproductandcustomersegments.Lenovoalsoachievedstrongperformanceinunitshipments,revenueandprofitgrowthforitsPCbusiness.Withthisconsistentstrongperformance,Lenovobecametheworld’snumbertwoPCmakerinfiscalyear2011/12andcontinuedtoclosethegapwiththeindustryleader.Accordingtothepreliminaryindustryestimate,theGroup’sglobalmarketsharegrew3.0percentagepointsyear-onyeartorecord-high12.9percent,withstrongPCshipmentsgrowthof35percentyear-on-yeartorecord-high47.6millionunits.1.3.2ProductionstructurePC:IdeaProductGroup/NotebookProducts/DesktopProductsMIDH:Smartphones/Featurephones/Tabletproducts/SmartTVNotebookProductsTheGroup’snotebookPCunitshipmentsgrew36percentyear-on-yearagainstthemarketgrowthofonly5percent,anditsmarketshareinworldwidenotebookPCincreasedby2.9percentagepointyear-on-yearto13.0percentforthefiscalyear.ThisperformancehelpedLenovotobecometheworld’sthirdlargestnotebookcompanyandmaintaintheworld’ssecondlargestcommercialnotebookCompany.DesktopProductsTheGroup’sdesktopPCunitshipmentsgrew34percentyear-on-year,about75timesofthegrowthoftheoverallworldwidedesktopPCmarketof0.5percent.Asaresult,Lenovo’sworldwidemarketshareindesktopPCincreasedby3.2percentagepointyear-on-year,to12.8percent,andtheGrouphasbecometheworld’ssecondlargestdesktopPCcompanyfromthethirdpositioninpreviousfiscalyear,accordingtoindustryestimates.MobileInternetProductsMIDHrevenueaccountedfor5percentoftheGroup’stotalrevenue.Lenovo’smarketshareinChinasmartphoneincreasedby8.6percentagepointfromthefiscalquarteronetorecordhigh9.5percentinthefiscalquarterfour,makingitsfullyearsmartphonemarketsharetoreach5.8percentforthefiscalyear2011/12,a4.6percentagepointgrowthyearon-year.Atthefiscalyearend,LenovowasthenumberfoursmartphonecompanyinChina.LenovowasthenumberoneproviderinAndroidtabletmarketinChina,thenumbertwoofoverallChinatabletmarketinthefiscalyear2011/12,andhasbecomethenumberfourtabletvendorintheworldinthefiscalquarterfour.1.3.3MarketShareChinaChinaaccountedfor42percentoftheGroup’stotalrevenue.Althoughthegovernment’stighteningmeasurestocurbinflationremainedinplace,leadingtosoftereconomicgrowth,China’sPCmarketcontinuedtooutgrowtheworldwidePCmarket,drivenmainlybytherelativelystrongerdemandinemergingcities.Accordingtopreliminaryindustryestimates,theChinaPCmarketgrewby13percentyear-on-yearduringthefiscalyear,andbecamethelargestPCmarketintheworld.EmergingMarkets(excludingChina)EmergingMarkets(excludingChina)accountedfor16percentoftheGroup’stotalrevenue.TheGroup’sunitshipmentsgrew38percentyear-on-yearforthefiscalyear,whichwasabout4timestheoverallmarketgrowthof10percent.InIndia,LenovohasbecomethenumberonePCvendorinthefiscalquarterfourwith10thstraightquartersoffasterthanmarketgrowthclosingoffthefiscalyear11/12withamarketshareof13percent.TheGrouphasalsobecomethenumberthreePCvendorinRussiainthefiscalquarteFour.MatureMarketsMatureMarketsaccountedfor42percentoftheGroup’stotalrevenue.TheGroupcontinuedtorecordstrongperformanceinshipmentsandimprovedprofitabilityinMatureMarketsduringthefiscalyear.TheGroup’sunitshipmentsinMatureMarketgrew53percent,againstoverallmarketdeclineof5percent.Accordingtopreliminaryindustryestimates,itsmarketsharereachedarecordhighlevelof8.7percentduringthefiscalyear,andrecord-high10.1percentmarketshareinthefiscalquarterfour,thefirsttimeitsmaturemarketsharetoreachdouble-digitlevel.2.Accountinganalysis2.1IndependenceofexternalAuditorTheGroup’sexternalauditorisPricewaterhouseCoopers(“PwC”),whoisremuneratedmainlyforitsauditservicesprovidedtotheGroup.TheCompanyhasadoptedapolicyonengagementofexternalauditorfornon-auditservices,underwhichtheexternalauditorisrequiredtocomplywiththeindependencerequirementsunderCodeofEthicsforProfessionalAccountantsissuedbyHongKongInstituteofCertifiedPublicAccountants.Externalauditormayprovidecertainnon-auditservicestotheGroupgiventhatthesedonotinvolveanymanagementordecisionmakingfunctionsforandonbehalfoftheGroup;orperformanyselfassessments;oractinginanadvocacyrolefortheCompany.Theengagementoftheexternalauditorforpermittedandapprovednon-auditservicesshallbeapprovedbytheAuditCommitteeifthevalueofsuchnon-auditservicesequalstooraboveUS$320,000.2.2InternalcontrolsCompanyhasestablishedanintegratedframeworkofinternalcontrolswhichisconsistentwiththeCOSO(theCommitteeofSponsoringOrganizationsoftheTreadwayCommission)framework.Whilemanagementisresponsibleforthedesign,implementationandmaintenanceofinternalcontrols,theBoardanditsAuditCommitteeacknowledgeresponsibilitytoensureLenovomaintainssoundandeffectiveinternalcontrols.TheinternalcontrolsystemoftheCompanycoverseveryactivityandtransaction.Withinthisframework,managementperformsperiodic,enterprise-wideriskassessmentsandcontinuouslymonitorsandreportstheprogressofactionplanstoaddressthekeyrisks.Managementalsotracksandreportsontheimplementationofstrategicinitiatives,businessplans,budgetsandfinancialresults.Aspartofthefocusonfinancialintegrity,allrelevantseniorexecutivesregularlyverifytheaccuracyandcompletenessofthequarterlyfinancialstatementsandcompliancewithkeyinternalcontrols.LenovohasestablishedaGlobalBusinessProcess&Controlsorganizationtofurtherassistmanagementwithmonitoringcontrols.Aspartofitsmission,theGlobalBusinessProcess&Controlsorganizationhelpstoclearlycommunicatecontrolrequirementsacrossallorganizationandprocessowners,designprocesses,andevaluatetheoperatingeffectivenessandefficiencyofdesignedprocessesandcontrolsinordertohelptomitigaterisk.2.3AccountingstandardThefinancialstatementshavebeenpreparedinaccordancewithHongKongFinancialReportingStandards(“HKFRS”).Thefinancialstatementshavebeenpreparedunderthehistoricalcostconventionexceptthatcertainfinancialassetsandfinancialliabilitiesarestatedatfairvalues.TheGrouphasadoptedtherevisedstandard,newinterpretations,andamendmentstoexistingstandardsandinterpretationsthataremandatoryfortheyearendedMarch31,2012andwhereconsideredappropriateandrelevanttoitsOperationsTheadoptionofthesenewlyeffectivestandard,interpretationsandamendmentsdoesnotresultinsubstantialchangestotheGroup’saccountingpoliciesorfinancialresults.Inaddition,thefinancialstatementsdisclosedinthenotestotheaccountingstandardsforsignificantandcriticalaccountingestimatesandjudgments.Financialanalysis3.1ProfitabilityAnalysisProfitabilitymeanstheabilityofenterprisetogainprofit.Profitisthemaintargetofenterprisemanagement.Profitabilityanalysisisanimportantcontentoffinancialanalysis,enterpriseprofitabilityanalysisisveryimportant.3.1.1Returnoninvestment.Toassessfinancialrewardstothesuppliersofequityanddebtfinancial.Returnontotalassets(ROA):netprofit/totalassets.Itgivestheideathathowefficientthemanagementisatusingitsassetstogenerateearnings.Returnoncommonequity(ROCE）:netincome/averageshareholders’sequity.Itmeasuresacompany’sprofitabilitybyrevealinghowmuchprofitacompanygenerateswiththemoneyofshareholdershaveinvested.item2010%2011%2012%ROCE8.614.314.4ROA1.442.563Fromthegraph,ROAandROCEincreasestably.ItindicatesthattheinternalgrowthrateisinaverygoodlevelandLenovo’searningcapacityisonahighlevel.DuetotheCompanyimplementedtwoshareoptionschemesandtheLTIProgramtoattract,retain,rewardandmotivateExecutiveandNon-executiveDirectors,seniormanagementandselectedtop-performingemployeesoftheCompanyanditssubsidiaries.Andhavingadiverseworkforceenablesthecompanytocompetemoreeffectivelyandsuccessfullyinthemarketplace.Lenovocandrawmoreattentionandgainmoresupportfromstockholderssothatitwillacquiremoreinvestandenterapositivecircle..3.1.2Operatingperformance.Toevaluateprofitmarginsfromoperatingactivities.Grossprofitmargin:grossprofit/revenue×100%Companyaimstosellmanyproductswithalowmarginorpotentiallyfewerproductswithahighmargin.Operatingprofitmargin:incomefromoperating/sales×100%TProfitmargin:netprofit/revenue.×100%Itmeasureshowmuchthecompanycanearnperdollar.item2010%2011%2012%Grossprofitmargin10.810.911.7Operatingprofitmargin1.01.72.0netprofitmargin0.781.271.61Expense-to-revenueratioAccordingtothedatafrom2010to2012,Lenovo’sprofitabilityincreasesstably..TheGrouphadthesomesignificantrelatedpartytransactionsinthenormalcourseofbusinessduringtheyear.EspeciallyIGRSEngineeringLabLimitedCompany.What’smore,theGroupcompletedtwobusinesscombinationactivitiesduringtheyear.SoLenovoisaimingatexpandingtheGroup’sexistingscaleofoperationsandtoenlargetheGroup’smarketshare.thenhasmorecompetitivenessinsameindustry.ontheotherside,Lenovoalsohasahighreturnonassetsandequity.3.1.3Marketmeasures.Toestimatetheintrinsicvalueofacompany(stock).Earningspershareistheamountofnetprofitfortheperiodthatisattributabletoeachordinarysharewhichisoutstandingduringallorpartoftheperiod.BasicEPSshouldbecalculatedforprofitorlossattributabletoordinaryequityholdersoftheparententityandprofitorlossfromcontinuingoperationsattributabletothoseequityholders(ifthisispresented).ThePrice/Earnings(P/E)ratioistheratioofacompany'scurrentsharepricetotheearningspershare.item201020112012EPS–basic(UScents)a1.422.844.67EPS–diluted(UScents)1.332.734.57Marketpricepershareb5.364.435.36Dividendpershare(HKcents)cPrice-to-earningd=b/a3.771.561.5Earningyielde=c/b66.8%64.1%26.5%FortheP/EratioofLenovo,from2010to2012,itdecreasesyearbyyearfor3.77%,1.56%,1.5%respectively.Generally,thelowertheP/Eratiothegreatertheindicationofriskfortheinvestor.Therationalexpectationsofbuyersandsellersinthestockmarkettendtobeincorporatedinthepriceofshares.Sothecompanyshouldtakesomeeffectivemeasurestomaintaininvestors'recognitionforcorporatepotentialgrowth.3.2OperatingcapacityanalysisAnalysisofEnterprises'OperatingCapacity,referringmainlytotheperformanceandefficiencyofcompany'soperatingassets.Turnoverisanveryimportantindicatortoanalysisacompany'soperatingcapacity.item20112012Cashturnover8.31728.8122Accountsreceivableturnover18.070715.8834Inventoryturnover22.858125.8414Totalassetsturnover2.19662.2264Currentassetturnover3.04752.9934Noncurrentassetturnover7.86718.6858Cashturnover:thecashturnoverhasimprovedin2012.Thisisbecausethegrowthofsalesrevenuewasexceededthegrowthofcashandcashequivalents.Theincreaseincashturnovershowslenovoutilizethecashmoreefficiently.Butintheoppositedirection,both2011and2012havealargeamountofaveragecashandequivalents,thiswillnotonlyaffectthecompany'slevelofcashturnover,butalsoreducechancesthatcangetmoreprofit.Accountsreceivableturnover:accountreceivableturnoverin2012islessthan2011.itmeansitismoredifficulttotakebackmoney,itwilllowertheliquidityofassets,anditismorelikelytooccurbaddebt.Inventoryturnover:theinventoryturnoverin2012is26,morethan2011's23,meansithasaloweroccupationofinventory,theliquidityhasimproved,theinventorycanbeturnedintocashinashorttimecomparedwith2011.Totalassetsturnoverandcurrentassetturnover:thetotalassetturnoverisaffectedbytwofactors,theyarecurrentassetturnoverandthepercentageofcurrentassettototalasset.Throughtheformwecanfinedthatthecurrentassetturnoverhasreduceddown.Instead,thetotalassetturnoverhasimproved.Sothegrowthoftotalassetturnoverisnotbecauseofthedecreaseincurrentassetturnoverbutthepercentageofcurrentassettototalassethasbeenimproved.Thelowcurrentassetturnoverwillleadtocapitalwasteandreducedowntheprofitabilityofthecompany.Noncurrentassetturnover:theNoncurrentassetturnoverinboth2011and2012areveryhigh,especially2012,got8.6858times,itmeansthecompanycouldtakebacktheyear'sinvestcapitalinjustin42days.Itsuggestthatthelenovogrouphasahighusageofnoncurrentassetandastrongprofitability.3.3solvencyanalysisSolvencyreferstotheenterprise'sabilitytorepaymaturingdebt.solvencyanalysisincludesShort-termsolvencyanalysisandlong-termsolvencyanalysis.3.3.1Short-termsolvencyShort-termsolvencyistheabilityofacompanyrepayitsdebtsbyitscurrentassets.Ithave4financialindicatorstoreflectshort-termsolvency,theyareasfollows:item20112012Workingcapital-96,19010,723Currentratio0.98801.0009Quickratio0.88800.8977Cashratio0.36780.3182Workingcapital:theworkingcapitalin2011isanegativenumber,itindicatethatthecompanyhadnosufficientcapitaltorepayitsobligationsandfacedseriousShort-termliquidityrisk.ThisisbecausetheformationoftheNECJVandtheacquisitionofMedionincreasedthetradepayableoftheGroupbyUS$601million,it'salargenumberofcurrentliability.In2012,theworkingcapitalhasincreased,thecompanyhaveastrongerabilitytobearitsdebts.Currentratio:thecurrentratioof2011islessthan1,itmeansthecompany'sensurancetocurrentliabilityisweak.thefigurein2012ismorethan1,sothecompany'sworkingcapitalhasincreased,itcanrepaydebtonschedule.Quickratio:quickratioinboth2011and2012arelessthan1,itshowsthatthecompanyisshortofcapitalwhichcanbeturnedintocash.Cashratio:comparedwith2011,thecashratioin2012hasdeclined.Thisisbecausethecurrentliabilityin2012hasincreased,Itindicatethatthecompanyhastakefulladvantageofliabilitytogetmoreprofit.3.3.2Long-termsolvencyLong-termsolvencyreferstotheenterprise'sabilitytorepaythelong-termdebt.Ithasmanyratiostoreflectlong-termsolvency,typicalratiosareasfollows:Item20112012Debt-to-assetratio0.82500.8388EquityRatio0.17140.1543DebttoEquityRatio4.83465.4791TimeInterestEarned8.275114.3944Debt-to-assetratio:thedebt-to-assetratiohasincreasedbecauseisbearsmoreliabilitiesin2012.althoughtheprofitfromfinancialleveragehasincreased,itlowsthecompany'sabilitytofiance.EquityRatio:theequityratioin2012wasdeclinedcomparedwith2011.Itmeanstheportionofliabilitywasimproved.Sothecompanycouldtakefulladvantageofthefinancialleveragetomakemoreprofit,butfinancialriskwillberiseatthesametime.DebttoEquityRatio:becauseoftheformationoftheNECJVandtheacquisitionofMedionincreasedtheliability,thedebttoequityratiohaveanobviousincrease,itmeansthecompany'slong-termsolvencyhasdeclined,theensuranceofrightofcreditorsturnedtoweak,socreditorshavetobearmorerisktolendmoneytothecompany.Inotherwords,itismoredifficultforthecompanytoraisemoney.TimeInterestEarned:profitbeforetaxationincreasedinlinewiththeincreaseinactivitiesduringtheyear2012.ThenewcustomersbroughtinfromtheformationoftheNECJVandtheacquisitionofMedionincreasedthesalesrevenueandprofit.Atthesametime,thefinancecosthavedecreased,sothetimeinterestearnedgotasignificantincreasein2012.thissuggestthat,thecompanyhasStrengtheneditslong-termsolvency.3.4CashflowAnalysis3.4.1.Cashflowstructureanalysis:Fromtheconsolidatedstatementofcashflow,wecanknowthatthetotalcashflowisincreasedform2011to2012.1.Lenovo’scashinflowstructureanalysisItem20112012Amount($’000)Percentage(%)Amount($’000)Percentage(%)Cashinflowformoperatingactivities1,089,097822,126,76597Cashinflowforminvestingactivities213,1811649,2442Cashinflowformfinancingactivities25,116210,8891Totalcashinflow1,327,3941002,186,898100Thetableshowthatcashinflowfromoperatingactivitiestookupalargepercentageoftotalcashinflow,itmeanslenovohavegoodoperatingcompetence.theycanmakemoreprofits.2.Lenovo’scashoutflowstructureanalysisItem20112012Amount($’000)Percentage(%)Amount($’000)Percentage(%)Cashoutflowformoperatingactivities123,84319186,80913Cashoutflowforminvestingactivities147,66222886,31563Cashoutflowformfinancingactivities397,62559326,41324Totalcashoutflow669,1301001,399,537100Combinedtwotablewecanknowthat:Thepercentageofcashoutflowformoperatingactivitiesisdecreased.butthepercentageofcashinflowisincreased.sotheoperatingefficiencyisimproved.Thepercentageofcashoutflowfrominvestingactivitiesisincreased.becausethecompanybuysomePPE,andthereareabigcostinacquisitionofsubsidiaries.Thepercentageofcashinflowfromfinancingactivitiesislowbutoutflowhavemorepercentage,especiallyin2011.althoughtheamountsdon’thavebigchange,totalcash