Cash Flow Statement

Also known as the statement of cash flows, the cash flows statement is one of the four basic financial statements required by GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards).

It is concerned with the flow of cash into and cash out of the business, breaking the analysis down to operating, investing, and financing activities. The statement of cash flows helps investors evaluate the short-term viability of a company, particularly its ability to pay bills.

Formula

Net Cash Flow = Net Operating Cash Flow + Net Financing Cash Flow + Net Investing Cash Flow