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.

Here’s what you need to know about calculating free cash flow and other components of a cash flow statement: — Calculation of free cash flow. — Example of a free cash flow calculation.

Learn financial statement analysis techniques, including horizontal, vertical, and ratio analysis, to assess company ...

Most companies opt to report the cash flow statement using the indirect method because accrual accounting provides a better measure of the ebbs and flows of business activity.

For example, if your cash flow statement shows operating cash flow of $400,000 and net revenue of $1 million, you end up with 0.40. It means that the company generates 40 cents in cash from ...

Learn how to analyze a cash flow statement like a pro! This guide covers financial statement analysis, investing, and ...

Explore the fundamentals of cash flow statements, including their structure, significance, and the insights they provide into a company's financial health in 2025.

Unlike the income statement, which reports income on an accrual basis, the cash flow statement shows the immediate sources and uses of cash during an accounting period.

Higher free cash flow gives a company the flexibility to invest in its future while maintaining operations.

For example, if your cash flow statement shows operating cash flow of $400,000 and net revenue of $1 million, you end up with 0.40. It means that the company generates 40 cents in cash from ...