Cash flow statement
Also called: statement of cash flows
The financial statement showing cash coming in and going out during a period, grouped into operating, investing and financing activities.
The cash flow statement records money when it actually moves, unlike the accrual-based income statement. Its final figure, the change in cash, matches the change in cash between two balance sheets.
Most companies build the operating section with the indirect method, starting from profit and adjusting for non-cash items and working capital changes.
Example
Operating cash flow of ₹150 crore, investing of −₹60 crore and financing of −₹100 crore mean cash fell by ₹10 crore.
Learn more in these lessons
- The cash flow statementHow do you read a cash flow statement?
- How the three statements connectHow are the three financial statements connected?
- Free cash flow and cash conversionWhat is free cash flow, and why do investors care about it?
Related terms
Spotted a mistake or something unclear? Report it by email. Here is how corrections work.