Financial Statements

Cash Flow Statement

A financial statement that shows the actual cash moving in and out of a business during a specific period.

What does Cash Flow Statement mean?

The cash flow statement is divided into three sections: operating activities (cash from core business), investing activities (asset purchases and sales), and financing activities (debt and equity transactions). Unlike the income statement, which includes non-cash items like depreciation, the cash flow statement shows real liquidity. It answers the critical question: does this business generate enough cash to sustain operations, invest in growth, and service its obligations?