Financial Report - Cash Flow
I noticed tend to forget the important points when reading the financial report. Hence, decided to write down important points to take note when reading the financial report. This is for my own good and at the same time can help and share with those who are interested. The last part of financial report is Cash Flow statement. No matter how good the asset, if the company cannot service its debt, the company will fall in default. From the cash flow statement, we can know if the cash is flow in or out of the company. Cash Flow statement divided into 3 sections, namely, Cash Flows from Operating, Investing and Financing. 1. Cash Flow from Operating shows the net income and any depreciation or amortization add back. 2. Cash Flow from Investing usually show negative, as the money spend to buy equipment or spend to maintain those equipment, we call them Capex or Capital Expenditures. 3. Cash Flow from Financing activities record down all the dividend payments or the company buy back