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cash flow from operation is shows the net profit of the company add or less the changes of current assets and current liabilities plus all the intangible exp dudected from income. level of cash of the company is how much the company should have in cash reserves.
Cash flow generated after meeting the operational expenses EBITDA and level of cash flow shows after capital investment and how good the current ratio
includes operational sales revenues and monetary sources beyond merely sales revenues. Companies often generate or obtain cash in a variety of ways that lie outside the conduct of their main business. These extra sources of money that figure into the calculation of cash flow, but are not normally considered part of operational revenue, include such things as financing and investing. Licensing agreements are another source of cash, one that may be included as ordinary revenue. The critical importance of cash flow lies in the ability for a company to remain functional; it must always have sufficient cash to meet short-term financial obligations.
The level of cash of the company is the balance maintained at any point of time but on the other side cash flow from operations is the cash generated from company business during the period.
Level of cash of the company represent the available cash for the company in bank and save, while cash flow from operation represent reconciliation of NI for operating items such as depreciation, net change in AR, net change in inventory, net change in AP and so on. it shows the company ability to generate cash from it's operation.
The amount of cash flows arising from operating activities is a key indicator of the extend to which the operation of the company have generated suficient cash flows to maintain the operating capability of the company , pay dividends,repay loan and new investment without recourse the external source of financing The level of cash of the company is the cash as per the books at a specific point of time . Profit earned from normal core business activity may be good but the same time company may have financial turmoil, then the analysis of cash flow statement provide information about the companys gross payment and receipt
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