![]() The principal financial statements are the income statement, balance sheet and cash flow statement. What you need to know about cash flow statements…Įvery publicly-traded company must file financial statements and reports with the Securities and Exchange Commission in the US and other financial regulators alike worldwidein other countries. Moreover, your investment manager or financial advisor may have recommended keeping your eye on the cash flow statements of theyour chosen company when making investment decisions. These usually come across when the Financial Times or other financial news sources cover some major companies reporting their financial reports. You may have heard about the cash flow statements for at least a few times before. Typically, publicly traded companies publish their cash flow statements in quarterly or annual reports. Where have you heard about cash flow statements? It carries significant importance as it helps investors get an overall sense of the company’s cash inflows, determine whether it is on solid financial ground and obtain a general understanding of its overall performance. The cash flow statement allows investors to have a better understanding of the way a company conducts its operations, giving an insight into where its money comes from and how this money is spent. It acts as a bridge between the income statement and balance sheet and is an obligatory part of a company's financial reports. The cash flow statement serves as a measurement of how well a business manages its cash position, generating cash to fund its operating expenses and pay its debt obligations. The time interval that the statement covers is defined by the company. Also known as the statement of cash flows, it reports the cash generated and used during a specific period of time, such as a month, quarter or year. The cash flow statement definition refers to the financial statement issued by a business, which summarises the amount of cash and cash equivalents entering and leaving a company. ![]() US30 US Wall Street 30 (USA 30, Dow Jones) ![]()
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