"Cash Flow Made Easy: A Beginner's Guide"

      BASICS OF CASH FLOW STATEMENT


  • Cashflow from operating activities
  • Cashflow from investing activities
  • cashflow from financing activities 

1) cash flow from operating activities

  • the cash obtained from bussiness operations can seen in "cashflow from operating activities"
  • choose companies with positive cashflows from operations which indicates the firm is generating cash which later used for its future growth

2)cashflow from investing activities

  • it tells us the companies investments in the various instruments like physical assets ,investment in construction of plant and office building,mutual funds,stocks.....,
  • choose companies with negative cashflow from investing activities which signifies the company was been invested for its future growth

3)cashflow from financing activities

  • the money obtained from loans can be seen in cash flown from financing activities 
  • if there is more cashflow from investing and financing activities than the operating activities.thenit is not a good sign
IN MY FUTURE BLOGS WE CAN DIVE DEEP INTO THE ADVANTAGES AND DISADVANTAGES OF POSITIVE AND NEGATIVE CASHFLOWS

DISCLAIMER the content provided is taken from many resources and it is purely my opinion.For investment decision try to do your own research or consult your financial advisor









































































































































































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