CASH FLOW STATEMENT ANALYSIS
This query is : Resolved
18 June 2021
What activities to be considered in Cash flow statement to check the
1.Financial health
2.Sustainability of a company
1.Financial health
2.Sustainability of a company
18 June 2021
The company should be generating cash flows from operating activities.
Cash generation from only financing activities is not a good sign. Negative flows or inadequate flows from operating activities threat sustainability of the company.
The company should have outflow in investing activities indicating growth.
Overall cash flow statement gives info about liquidity in the company.
Cash generation from only financing activities is not a good sign. Negative flows or inadequate flows from operating activities threat sustainability of the company.
The company should have outflow in investing activities indicating growth.
Overall cash flow statement gives info about liquidity in the company.
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