Cash Flow Statement/ Analysis

By: Trevor Johnson

What is the cash flow statement?

A financial statement that records a company's actual cash inflows and cash outflows.

What does the cash flow statement do?

The CFS allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent.

Where does the cash flow statement come from?

Cash can come from several sources (purchase of goods or services sold by the business, borrowings by the business, or equity investment into the business), but ultimately, it is revenue which drives cash flow.

What does the cash flow statement show?

The cash flow statement shows the money that is coming in vs the money that is going out.

What sections are in the cash flow statement?

Companies produce and consume cash in different ways, so the cash flow statement is divided into three sections: cash flows from operations, financing and investing.
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