Cash flow statement - Financial definition
Financial acronyms
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Concise definition of the term cash flow statement
A cash flow statement reports a company’s incoming and outgoing cash flows. Its bottom line shows the net increase or decrease in cash for the period.
Comprehensive definition of the term cash flow statement
The cash flow statement shows the evolution of the balance sheet cash position in current assets since the last balance sheet date.
Cash flow statements are usually divided into three main categories:
- Cash flow from operating activities (e.g. revenues, operating expenses),
- Cash flow from investing activities (e.g. sale or purchase of assets), and
- Cash flow from financing activities (e.g. raising debt, issuing shares, …).