Domain: Accounting
Question:
Based on the Unilever 2024 consolidated finance report, analyse cash flows from operating, investing, and financing activities. For each activity, compare 2024 results with 2023, identify the largest inflows and outflows, and explain the main drivers based on the line items provided. Discuss how the net change in cash and cash equivalents from these activities contributed to the year-end cash position.

Expected points in a correct answer:
State the reporting periods used are FY2024 and FY2023 as presented in the Cash Flow statement columns.
Extract "Net cash flow from operating activities" for FY2024 = 9519.
Extract "Net cash flow (used in)/from investing activities" for FY2024 = -625.
Extract "Net cash flow (used in)/from investing activities" for FY2023 = -2294.
Reconcile FY2023 net increase in cash: 9426 + (-2294) + (-7193) = -61.
Extract "Net increase/(decrease) in cash and cash equivalents" for FY2024 = 1953.
Extract "Cash and cash equivalents at the end of the year" FY2024 = 5950.
Reconcile FY2024 ending cash: 4045 + 1953 + (-48) = 5950.
Reconcile FY2023 net investing cash flow: sum(267, -243, -1502, 42, -704, 436, -533, 62, 239, -358) = -2294.
Reconcile FY2024 net increase in cash: 9519 + (-625) + (-6941) = 1953.
Reconcile FY2024 net investing cash flow: sum(432, -233, -1738, 37, -795, 985, -166, 59, 261, 533) = -625.
Extract "Disposal of businesses, joint ventures and associates" for FY2024 = 985.
Extract "Net cash flow from operating activities" for FY2023 = 9426.
Calculate YoY change in net investing cash flow = 1669 (-625 - (-2294)).
Extract "Purchase of property, plant and equipment" for FY2024 = -1738.
Extract "Sale/(purchase) of financial assets" for FY2024 = 533.
Extract "Acquisition of businesses and investments in joint ventures and associates" for FY2024 = -795.
Extract "Cash and cash equivalents at the beginning of the year" FY2024 = 4045.
Extract "Sale/(purchase) of financial assets" for FY2023 = -358.
Extract "Net cash flow used in financing activities" for FY2024 = -6941.
Extract "Purchase of intangible assets" for FY2024 = -233.
Extract "Interest received" for FY2024 = 432.
Calculate YoY change in net cash flow from operating activities = 93 (9519 - 9426).
Extract "Net increase/(decrease) in cash and cash equivalents" for FY2023 = -61.
Extract "Net cash flow used in financing activities" for FY2023 = -7193.
Calculate YoY change in sale/(purchase) of financial assets = 891 (533 - (-358)).
Extract "Acquisition of businesses and investments in joint ventures and associates" for FY2023 = -704.
Extract "Purchase of property, plant and equipment" for FY2023 = -1502.
Extract "Disposal of businesses, joint ventures and associates" for FY2023 = 436.
Calculate YoY % change in net investing cash flow using absolute FY2023 base = 72.7% (1669 / 2294).
Extract "Interest received" for FY2023 = 267.
Extract "Effect of foreign exchange rate changes" FY2024 = -48.
Calculate YoY change in disposal proceeds = 549 (985 - 436).
Extract "Acquisition of other non-current investments" for FY2023 = -533.
Calculate YoY change in purchase of PPE = -236 (-1738 - (-1502)).
Extract "Acquisition of other non-current investments" for FY2024 = -166.
Extract "Dividends from joint ventures, associates and other non-current investments" for FY2024 = 261.
Calculate YoY change in interest received = 165 (432 - 267).
Extract "Purchase of intangible assets" for FY2023 = -243.
Calculate YoY change in acquisition of other non-current investments = 367 (-166 - (-533)).
Extract "Disposal of property, plant and equipment" for FY2024 = 37.
Calculate YoY change in acquisitions/JVs outflow = -91 (-795 - (-704)).
Extract "Disposal of other non-current investments" for FY2024 = 59.
Extract "Dividends from joint ventures, associates and other non-current investments" for FY2023 = 239.
Calculate YoY change in purchase of intangible assets = 10 (-233 - (-243)).
Extract "Disposal of other non-current investments" for FY2023 = 62.
Extract "Disposal of property, plant and equipment" for FY2023 = 42.
Explain FY2024 investing cash use (-625) was substantially lower than FY2023 (-2294), improving cash by 1669 YoY.
Explain investing activities contributed -625 to FY2024 year-end cash (i.e., reduced cash by 625 relative to a no-investing scenario).
Identify the largest positive YoY swing within investing drivers as: sale/(purchase) of financial assets +891.
Identify the 2nd largest positive YoY swings within investing drivers as: disposal of businesses/JVs +549
State that increased capex outflow (purchase of PPE) of -236 YoY partially offset investing cash flow improvements.