Finance and accounting
Cash flow statement
Where cash came from and where it went.
Facts checked against sources onWhat does Cash flow statement mean?
The cash flow statement shows the cash that came in and went out in a period, split into operating activities (running the business), investing activities (such as capex) and financing activities (such as borrowing or paying dividends). A profitable company can still run out of cash, which is why this statement matters.
Where does it come up in case interview prep?
- A light balance sheet, and why profit is not cashLesson in Business basics for non-business learners
- How the three statements link: one company through all threeLesson in Reading a business through its numbers: the three statements, cash and value
- The cash flow statement, and why profit is not cashLesson in Reading a business through its numbers: the three statements, cash and value
- Reading a real results release: Inditex, FY2025Lesson in Reading a business through its numbers: the three statements, cash and value
Related terms
- Free cash flowCash from operations minus capital expenditure.
- Income statement (P&L)Revenue, costs and profit over a period.
- ProfitThe money left over after costs. Revenue minus cost.
- RevenueMoney earned from sales, before costs.
- CostWhat it takes to make and sell the product in a period.
- Fixed costA cost that stays the same when volume changes, within a normal range.
- Variable costA cost that rises and falls with how much you make.
- Semi-variable costA cost with a fixed part and a part that moves with volume.
Learn it in context
See Cash flow statement at work in a lesson from Business basics for non-business learners, with checks as you go.
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