Cash Flow Statement Analysis

Cash Flow Statement

A financial report showing the cash inflows and outflows during a period.

Cash

Money readily available for use in operations or investments.

Operating

Cash flows generated from core business activities.

Investing

Cash flows from buying or selling long-term assets.

Financing

Cash flows from borrowing, repaying debt, or issuing equity.

Inflow

Money received by the business.

Outflow

Money spent or paid out by the business.

Net Cash Flow

The difference between total cash inflows and outflows.

Direct

Method showing cash transactions directly in the statement.

Indirect

Method starting with net income and adjusting for non-cash items.

Adjustments

Changes made to reconcile net income with cash flow.

Depreciation

A non-cash expense added back to operating cash flow.

Amortization

Similar to depreciation, but for intangible assets.

Working Capital

Changes in current assets and liabilities affecting cash flow.

Interest

Payments made or received on borrowed or invested funds.

Dividends

Cash payments to shareholders, shown under financing activities.

CapEx

Capital expenditures; cash spent on long-term investments.

Free Cash Flow

Cash flow remaining after operating and capital expenditures.

Liquidity

The ability of a company to generate enough cash to meet obligations.

Noncash

Items like depreciation or gains that do not affect cash directly.