الخلاصة:
This study aimed at showing the role of the cash flow statements in predicting future net cash flows by examining the predictive capacity of different cash flow measures compared to accounting profits, on the one hand, and on the other hand testing the relation between absolute cash flows extracted from the cash flow statement, and determining the best predictors of future cash flows. This study also aimed to test the ability of predicting of the derived cash flows ratios. Three multiple regression models have been constructed, based on the financial data of five Algerian economic institutions for the period 2011-2016.
The study found that the cash flow measures have a predictive capacity that exceeds the accounting profits and that the cash and investment cash flows outweigh the operational cash flows in predicting the future cash flows. The results also showed that the cash flow ratios derived from the cash flow statement are not a good predictive indicator In the institutions under study
