Voyage Cash Flow

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. Some of the other ways to determine cash flow from different perspectives is VCF Voyage cash flow , ACF Annual cash flow and the required freight rate analysis . Although cash flow is important in valuing a shipping company other financial statements like the income and balance statements should still be examined in determine a final valuation of the company. Another viable way to increase your accuracy in determining the intrinsic value of a shipping company is by developing a Net Asset Value Model or NAV Model. Although these models are very intensive and may require further research it gives you the liquid assets of a company, which can also help you predict what lies in the future for the company during periods of low economic activity. …show more content…

After very lightly skimming across the basics of equity valuation, the strategy of the company comes is next.
Strategy of the company
A shipping company has many avenues when deciding on their strategy. Companies will take all their costs into consideration and try to operate efficiently as possible without sacrificing key factors in the company. Depending on which company you are examining they could be using third-party management . This is not a bad strategy, but instead of examining the shipping company itself take a closer look at the operations that are ran through the parent company and then the third-party company in order to determine their full strategy. In the beginning stages it is important to look into how the company is purchasing a ship. A ship is a very large investment that can run from 10 to 150 million dollars and is not be taken lightly to the company. Are they purchasing it with cash or are they financing it through a 5 or 10-year loan? Differences like these have a large effect to the cash flow and profitability of a company and can be the deciding factor on if the company will be able to survive through trough stages . Another aspect of strategy that is of great importance to a shipping company is their

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