![]() ![]() ![]() How to know if a cash flow statement is good or bad?Ī good cash flow statement demonstrates positive cash flow and positive operating cash flow, in addition to rational investing and financing activities. It is an important tool for investors, analysts, and managers to evaluate a company's financial performance and make informed decisions. The cash flow statement helps to assess a company's liquidity, solvency, and overall financial health by showing how much cash is generated or used by its various activities. ![]() Analysing cash flow statements help understand how much cash is being generated, where it comes from, and how it is used. In any business, a cash flow statement shows the inflow and outflow of cash within an organisation during a particular period, typically a fiscal quarter or year. It provides information about a company's sources and uses of cash, including operating activities (such as revenue and expenses), investing activities (such as buying or selling assets), and financing activities (such as issuing or repurchasing stock or borrowing money). Wondering what the cash flow statement definition is?īy definition, a cash flow statement is a financial statement that depicts the inflows and outflows of cash for a particular period. ![]()
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