Cash Flow Statement

What is a Cash Flow Statement?

A Cash Flow Statement is a financial document that provides a summary of a company's cash inflows and outflows over a specific period. It reflects how well the company generates cash to pay its debt obligations, fund its operating expenses, and manage its investments.

Short Description: A financial statement that shows a company's inflows and outflows of cash over a specific period.

• Operating Activities: Cash generated from core business operations.
• Investing Activities: Cash used for investing in or selling company assets.
• Financing Activities: Cash flow resulting from funding the business operations through debt, equity, or dividends.

The Cash Flow Statement is essential for assessing the financial health of a business, determining short-term viability, particularly its ability to meet liabilities as they become due.