Archive / 4.5 Statement of Cash Flows

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Cash flows from financing activities

Statement of cash flows includes group cash flows that aren’t related to operations nor investments. If you think about it, your company operates, that’s it’s primary purpose. Your company also invests into assets, whether they’re physical assets, financial assets or say subsidiaries. However, your company also needs financing (that is investments to parties making those […]

Cash flows from investing activities

One of the reasons why it’s important to have positive cash flows from operations arises from the fact that for sustainability your company at some point needs to invest. The investments may be smaller and regular or substantial and take place less often, however the fact remains that to keep the business going at one […]

Cash flows from operating activities

Cash flows from your company’s operating activities are the most important ones in terms they show whether your very core of business is generating or losing cash. A sustainable business is always earning cash so it’s important to have cash flows operating activities positive. Should it be that they are negative, it’s important to understand […]

Statement of cash flows

Cash flows are in fact very important for your company. ‘Cash’ in itself is a resource usable for everything your business needs to keep on running – buying goods to sell, paying for wages, buying services and so on. It’s also a resource to be paid as dividends, i.e. owner’s income from the operations of […]