Cash Flow StatementEastman Kodak's cash flow statement shows that cash flow has decreased every year except 2012 (Nasdaq, 2015). The reason is that the company sold $90,000 of its fixed assets and also issued a significant amount of debt (Nasdaq, 2015). In 2013, Kodak paid off $811,000 of its debt, which was different from other years (Nasdaq, 2015). Perhaps that's what they did since 2013 was the only year with a positive net profit. Every year from 2011 to 2014, Kodak purchased fixed assets (Nasdaq, 2015). Exchange rates had little effect on their cash flows until 2014, when they accounted for 42% of their total cash usage. Liquidity Ratio Analysis In terms of liquidity, Kodak is in a good position. This is because Kodak's debt ratio has improved since 2012, when it was significantly above 1. Their debt ratio in 2014 is 0.89, which is very close to that from Hewlett-Packard and Sony. Kodak's debt ratio is the first signal among the ratios that the company is not performing well. Generally, this ratio should be less than 1 and for Kodak in 2014 it was 8.83. Their equity capital is almost non-existent, which reflects a very weak balance sheet strength. Compared to Kodak, Hewlett-Packard and Sony are doing well, but their ratios are both well above 1. In terms of ability to pay interest, Kodak's only good year was 2013. Their ratio fell in 2014, which shows that they are not. able to pay their interest or have difficulty paying it. Hewlett-Packard had no interest expense in its last fiscal year and Sony's ratio is very strong. In 2012, Kodak's free cash flow was negative (-$1,176,000). Surprisingly, it reached over two million in 2013, but then fell to just $33,000 in 2014. Without sufficient cash flow, Kodak is going to struggle to increase its shareholder value. Hewlett-Packard has over five million dollars in free cash flow, which is huge compared to Kodak. Kodak does not appear to have enough cash to meet its business obligations. The cash flow adequacy ratio should be greater than 1, but Kodak's is negative. Competitors are around 0.5 for their cash flow adequacy ratio, which in 2014 was 3.95; this was much lower than that of Hewlett-Packard and Sony. Their ratios were 8.06 and 6.53, respectively. This low ratio means Kodak might have a poor collection process and should consider changing it. Their effectiveness in debt recovery is poor; therefore, they lose money on their credit sales. Kodak's inventory turnover rate is also low. It decreased from 2012 to 2014, standing at 4.66. When this number is compared to HP and Sony (13.23 and 8.10 respectively), it shows that Kodak has poor sales and excess inventory. Kodak also doesn't generate much revenue per dollar of assets. This is demonstrated by their low asset turnover