The Hanover Insurance Cash Flow - Annual (NYSE:THG)

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$120.84 $0.82 (0.68%) THG stock closing price Mar 20, 2018 (Closing)

For analyzing any company like The Hanover Insurance from an investment perspective, its important to check the cash flow statement. While its important to look at the The Hanover Insurance debt position, the cash flow statement becomes equally important because public companies use accrual accounting. For example, if a company sells a product which gets counted as The Hanover Insurance revenue but does not convert to cash because it does not receive payment in the same quarter, it affects the cash position for that period. This statement can tell if a company is running out of money while still being profitable and is useful in The Hanover Insurance stock analysis. The Hanover Insurance had a positive net income cash flow of $155.1M for the latest 2016. This report is very useful in measuring the short term viability of a company. The cash from operating activities for The Hanover Insurance is $ 2016, which saw an increase from previous year.

View details of The Hanover Insurance cash flows for latest & last 10 financial years
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Fiscal year is Jan - Dec201620152014201320122011201020092008
Net Income Cash Flow
Depreciation Depletion Amortization Cash-Flow40.6M42.9M55.6M49.9M44.9M36.9M26.5M31.6M15.1M
Net Increase (Decrease) in Assets Liabilities462.9M47.4M181M28.1M407.7M147.1M-98.69M-128.6M-75.7M
Cash From (used in) Discontinued Operations-----0.7M-5.2M---
Other Adjustments Net79M16.6M46.1M54.9M-99.6M5.79M1M-8.59M249.5M
Net Cash from (used by) Operating Activities
Increase (Decrease) in Prop Plant And Equipment-15.7M-19.5M-11.2M-22.9M-21.3M-16.5M-10.9M-10.4M-9.5M
Acquisition Disposition of Subsidiaires6.9M44.3M--5.2M287.7M-13.3M-0.79M-99.8M
Increase (Decrease) in Investments-498.7M-195.2M-591.5M-335.79M-546.69M-91.19M-77.6M-139.7M298.8M
Other Cash Inflow (Outflow) from Investment Activities12.1M-1.1M2M--2.8M3M-23.3M-0.3M
Net Cash from (used by) Investment Activities
Issuance (Purchase) of Equity Shares-89.39M-110.7M-7.79M-53.2M-17.4M-17.8M-122.7M-145M-50.3M
Issuance (Repayment) of Debt Securities-104.7M-114.3M-0.7M28.7M-65.7M238.6M169M-0.9M-21M
Increase (Decrease) in Bank & Other Borrowings---------
Payment of Dividends & Other Cash Distributions-80.4M-74.2M-67M-60M-55.1M-50.9M-47.2M-37.5M-23M
Other Cash from (used by) Financing Activities-20.5M4.5M3.8M-21M4.8M-42.6M-7.7M53.2M-50.3M
Net Cash from (used by) Financing Activities
Effect of Exchange Rate Changes on Cash-3.4M-6.7M-5.2M1.7M32.4M-1.8M-2.3M131.6M-47.8M
Net Change in Cash & Cash Equivalents
Cash & Equivalents at Beginning of Year338.8M373.3M486.2M564.8M820.4M290.4M316.5M397.7M210.6M
Cash & Equivalents at Year End282.6M338.8M373.3M486.2M564.8M820.4M290.4M316.5M416.9M
All figures in USD. M: Millions of USD, B: Billions of USD.
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The Hanover Insurance stock price history provides insight into historical stock price fluctuations, and The Hanover Insurance stock comparison chart enables peer comparison. Some of the key terms used in the statement of cash flows are:

  • The Hanover Insurance has cash of $282.6M on hand. A healthy amount of cash on hand is necessary for any company. Cash has an opportunity cost associated with it, and too much cash in bank may mean that the firm has no or limited growth plans. Hence its important to track the Net Change in Cash and Cash Equivalents along with the The Hanover Insurance stock price.
  • Cash Flow from operating activities: The Hanover Insurance reported a positive operating cash flow of $737.6M for 2016 and has seen an increase from the previous year. Operating cash flow comes from main business activities. Investors look for positive cash flow from recurring operating activities.
  • Cash Flow from investment activities: This includes buying/selling of land and equipment, acquisitions and mergers, sell-off, investment in other companies like buying bonds, stocks etc., and was $-495.4M for THG in last 2016 report.
  • Cash Flow from financing activities: The cash inflow/outflow from financing activities was $-295M for The Hanover Insurance. The money accounted for under this head comes from external sources which includes lenders, investors and shareholders. Positive cash flow is generated when the company gets cash because of issuance of stocks or bonds. Similarly negative cash flow is generated when shares are repurchased, dividend payments are made, and loans or interest on loans are paid back.

Key Financial Ratios For The Hanover Insurance Cash Flow

FCF margin