Cash Flow Statement Analysis

One of the most important of all financial records, the cash flow statement (CFS) has been a legally-required document for more than 30 years. In the simplest terms, it is the document which records all cash that enters and leaves the business for any purposes. The primary purpose of the CFS is to show investors and outsiders in general how the company is operating, where it is getting its money from and how/where it is being spent. A cash flow statement is unique in that it doesn’t include future income or outgoings – only the exact financial position the business is in right now. For obvious reasons, preparation of cash flow statements must be meticulous, in terms of both accuracy and completeness.

This insightful tutorial focuses not only on the creation of cash flow statements, but also cash flow statement analysis and the core principles of working capital. Discover how accounts and businesses determine working capital requirements, along with how cash is both sourced and used in a corporate setting. Learn how to analyse and use data from an indirect or direct cash flow statement to steer the business in a more profitable direction.