Understanding Cash Flow Statement: Financial Acumen

If the Balance Sheet is complex, the way the Cash Flow Statement appears in the annual reports is even more complicated, since it is shown as a reconciliation between the P&L and Balance Sheet. However, the Cash Flow statement is probably the most meaningful indicator of the health of a business, particularly during uncertain times. It tells us whether the company is generating cash or using it up. In this FAQ, Srinivasa Addepalli explains how to make sense of this statement. (If you want to learn about Finance in an interactive way, do check out our self-learning programs on Financial Acumen.)