What is Cash Flow Statement?

A definition of Cash Flow Statement

“A cash flow statement is a financial document that provides a summary of the cash inflows and outflows for a business over a specific period of time, highlighting its liquidity position.”

Cash Flow Statement in Business Glossary - What is a Cash Flow Statement?

Business Glossary > What is Cash Flow Statement?


Examples of Cash Flow Statement in a Sentence:

The cash flow statement is crucial for assessing a company’s liquidity.

Investors often look at the cash flow statement to evaluate financial health.

The CFO reviewed the cash flow statement to manage funds more efficiently.

Why is Cash Flow Statement Important in Business?

The cash flow statement is crucial because it provides insights into a company’s liquidity, financial flexibility, and risk exposure, helping stakeholders make informed decisions. It reveals how well a company manages its cash to fund operations and growth.

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Associated Terms

Here are some associated business terms and synonyms for “Cash Flow Statement”:

  • Statement of Cash Flows
  • Cash Flow Report
  • Liquidity Report

Apple’s Cash Flow Statement

Apple reports its cash flow statement in its quarterly financial reports, providing details on operational, investing, and financing activities. This transparency helps investors understand Apple’s cash management and investment strategies, contributing to its sustained market leadership.

Final Notes on Cash Flow Statement

When analyzing a cash flow statement, consider the company’s ability to generate positive cash flow and its financial sustainability.

  • Understanding how cash is generated and spent
  • Evaluating investment and funding strategies

This knowledge is foundational for making informed business and investment decisions.


This has been a definition of Cash Flow Statement meaning.

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