What is Cash Flow Statement?
A cash flow statement provides an overview of how changes in balance sheet accounts and income affect a company's cash position. It includes operating, investing, and financing activities.
A cash flow statement provides an overview of how changes in balance sheet accounts and income affect a company's cash position. It includes operating, investing, and financing activities.
Introduction: The cash flow statement is one of the three critical financial statements (alongside the income statement and balance sheet) used to assess a company's financial strength and liquidity. It categorizes cash flow into operating, investing, and financing activities over a specific period, offering a detailed view of how a company generates and uses cash.
Structure of the Cash Flow Statement:
Analyzing a Cash Flow Statement:
Strategic Insights:
A cash flow statement provides invaluable insights into a company's operational efficiency, financial decisions, and overall strategy. Analysts and investors scrutinize this statement to gauge liquidity, risk, and potential for future cash generation.