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Cash flow statement

As explained in Investing for Programmers

A cash flow statement is a financial statement that reports cash inflows and outflows from operating, investing, and financing activities over a period.

A cash flow statement reports how much cash a company generates over a period, including inflows and outflows from operating, investing, and financing activities. It is one of three core financial statements, alongside the income statement and balance sheet. section 2.1

Use it to look beyond accounting balances and assess solvency. Accounts payable and receivable can represent money not yet received or paid, so positive reported results do not necessarily mean the company can pay its bills. section 2.1.2

For practical financial analysis:

  • Expect public companies to report the statement quarterly, alongside their income statement and balance sheet. section 2.1
  • Treat it as a cash-focused complement to the balance sheet rather than a replacement for broader accounting analysis. section 2.1.2

How Investing for Programmers covers it

How deep it goes
Defines its role and solvency relevance but deliberately stops short of detailed accounting treatment.
Examples
Uses quarterly reporting by public companies such as Apple, Walmart, Coca-Cola, Rolls-Royce, and Deutsche Bank.
What it assumes
Assumes basic familiarity with income statements, balance sheets, assets, liabilities, payables, and receivables.
What you can do after
Diagnose solvency by examining cash details that accounting balances may not reveal.
How it connects
Connects cash generation with the income statement, balance sheet, accounts payable, accounts receivable, and solvency.
Cover of Investing for Programmers
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Related concepts

This explainer was generated by Manning's knowledge graph from the text of Investing for Programmers. The section links point to the parts of the book it draws on.