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Goal: Figure out why Change In Cash and Cash Equivalents on the cash flow statement does not equal change in Cash And Cash Equivalents on the balance sheet.

Example:

Stock: DEO Period Ending: 6/30/2016 Period: Annual

From Cash Flow Statement:

Change In Cash and Cash Equivalents: 459,000

From Balance Sheet:

6/30/2015 Cash And Cash Equivalents: 742,000

6/30/2016 Cash And Cash Equivalents: 1,456,000

Different YOY is 1,456,000 - 742,000 = 714,000

I would expect YOY difference on the balance sheet to equal the 459,000 on the cash flow statement. Can anyone explain the disparity.

Link to Financials

  • Following the link you provided, I see different numbers, that still have a disparity. Change in Cash and Cash Equivalents is 427 million for period ending 6/30/2016. Cash & Cash Equivalents balances are 1,089 and 472 million for 2016 & 2015 for a difference of 617 million. – Shannon Severance Feb 20 '17 at 19:13
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tl;dr It's a difference between cash and cash equivalents and net cash and cash equivalents.

Download the 2016 annual report from http://www.diageo.com/en-us/investor/Pages/financialreports.aspx

On page 99 is the Consolidated Statement of Cash Flows at the bottom is a section "Net cash and cash equivalents consist of:"

Net cash and cash equivalents consist of: 2016-06-30 2015-06-30
Cash and cash equivalents 1,089 472 Bank overdrafts (280) (90) 809 382

The difference between net cash of 809 million and 382 million is 427 million, matching the "Change in Cash and Cash Equivalents" from Yahoo.

I do not know that bank overdrafts mean in this situation, but appears to cause cash to show up on balance sheet without being reflected in the net cash portions of the cash flow statement. And the numbers seem like balances, not year of year changes like the rest of the statement of cash flows.

2015 net CCE 382 2016 cash flow + 427 ---- 2016 net CCE 809 Cash from overdrafts + 280 ---- 2015 balance sheet cash 1,089

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