The Cash Flow Statement Interpreter
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Interpret this cash flow statement and tell me whether the company's cash position is healthy. Cash flow statement: [PASTE OPERATING / INVESTING / FINANCING SECTIONS] Net income for the period: [AMOUNT] Explain: 1. Operating cash flow versus net income — why they differ, and whether the gap is benign or worrying 2. What the investing section says about growth and reinvestment 3. What the financing section says about funding, debt, and returns to owners 4. Free cash flow (operating cash flow minus capex) and what it can fund 5. Whether this company is self-funding or dependent on outside money 6. The story these three sections tell together If operating cash flow is much lower than profit, tell me the likely reasons and what to check.
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