Cash Flow Statement
A financial statement showing cash movements from operations, investing, and financing.
The cash flow statement reports actual cash generated and spent during a period, organized into three sections: operating activities (core business), investing activities (asset purchases and sales), and financing activities (loans, equity, dividends). It reconciles net income with actual cash position and reveals whether cash is coming from sustainable operations or one-time events.
Example
A company's cash flow statement shows $50,000 from operations, -$30,000 from investing (new equipment), and $20,000 from financing (loan proceeds), for a net cash increase of $40,000.
Why It Matters for Your Business
The cash flow statement reveals where your cash actually comes from and goes—a company generating cash from operations is healthier than one relying on loans to stay afloat.
Related Terms
More Cash-flow Terms
Burn Rate
The rate at which a company spends cash monthly.
Cash Flow
The movement of money in and out of a business.
Cash Flow Forecast
A projection of expected cash inflows and outflows.
Free Cash Flow
Cash from operations minus capital expenditures.
Operating Cash Flow
Cash generated from core business operations.
Related Financial Guides & Resources
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