The statement of cash flows, also known as the cash flow statement, summarizes a company's sources and uses of cash. The net cash flow is the difference between a company's cash inflows and outflows.

Learn how taxes factor into operating cash flow calculations and why this metric is crucial for assessing a company's financial health and dividend potential.

When analyzing a company, start with cash from operations (CFO), capital expenditures (capex) and free cash flow (FCF). Confirm that they reconcile. Analyze them on a year-over-year basis by looking ...

The statement of cash flows for non-financial companies consists of three main parts: Operating flows - The net cash generated from operations (net income and changes in working capital). Investing ...

Small businesses may have losses in the first year or two of operations because it takes time to establish a market presence and generate enough revenues to cover costs. A loss does not necessarily ...

The ending balance of a cash-flow statement will always equal the cash amount shown on the company's balance sheet. Cash flow is, by definition, the change in a company's cash from one period to the ...

The cash flow statement reveals a lot about a business that you can't immediately find on the income statement or balance sheet. For example, many companies are profitable on the income statement, ...

Turning bad operations into good ones may be the hardest part of turning a cash flow-restricted company into one with positive cash flow. James Boening has seen it all in the car industry. In a career ...

FASB ISSUED CONCEPTS STATEMENT NO. 7 TO HELP CPAs who use present value and cash flow information as the basis for accounting measurements. Using Cash Flow Information and Present Value in Accounting ...