Submitting more applications increases your chances of landing a job.
Here’s how busy the average job seeker was last month:
Opportunities viewed
Applications submitted
Keep exploring and applying to maximize your chances!
Looking for employers with a proven track record of hiring women?
Click here to explore opportunities now!You are invited to participate in a survey designed to help researchers understand how best to match workers to the types of jobs they are searching for
Would You Be Likely to Participate?
If selected, we will contact you via email with further instructions and details about your participation.
You will receive a $7 payout for answering the survey.
Register now or log in to join your professional community.
Companies generate financial statements to obtain a comprehensive view of performance, strength and stability. It is important to look at all three financial statements -- the income statement, balance sheet and cash flow statement -- to get a clear and accurate picture of the company's financial and operational health. Since the cash flow statement focuses solely on the company's cash, it provides a good short- and mid-term view of a company's stability. Operations: Cash from operations indicates cash flow generated or used in running the business's main activities. Analysis of this section can uncover potential problems including low inventory turnover and slow payment on accounts payable. Negative operational cash flow can indicate a fast-growing company or a company that does not properly assess a customer's ability to pay. Monitoring the cash and projecting operating cash flow out can identify potential shortfalls in advance. Investing: Cash from investing indicates changes made in the asset section of the balance sheet. Any expenditures on or proceeds from the purchase or sale of property, equipment or other asset is recorded here. Growing companies typically show a negative investment cash flow due to all the capital expenditures. Struggling, asset-rich companies often show continual asset sales that offset negative or low operational cash flow. Financing: Cash from financing generates cash through financing activities including stock issuance, new loans, principal repayments and distributions. Any changes made on the balance sheet in the liabilities or shareholder’s equity section is reflected here. For example, a new working capital line of credit will show up here. Warning signs include significant short-term financing and no long-term financing.
statement of cash flows shows the entity’s ability togenerate positive future net cash flows (liquidity), its ability to meet obligations(solvency), and its financial flexibility.
tnx
From cash flow statement one can assess that how company is managing its operations. Where company is investing its funds and what are the financing sources.
The operating section is the most important as company must generate positive cash flows from its business operations. Then it will be in a position to invest its free cash flow in different profitable ventures or company expansion.
True, cash flow statement shows a companys stability & can be useful tool for forecasting of unutilised funds or funds that can be used to make working cycle of funds more in fruitful manner, by prioritising the expenses & capital payments.
A cash flow statement is a financial document that tracks the inflow and outflow of cash within a company over a specific period. It reveals how a company generates and uses cash, which is critical for assessing its financial stability. Here’s how it demonstrates stability:
1. Cash Flow Statement StructureThe statement is divided into three sections:
Operating Activities: Cash from core business operations (e.g., sales, salaries, suppliers).
Investing Activities: Cash spent on long-term assets (e.g., equipment, acquisitions) or received from selling them.
Financing Activities: Cash from issuing/paying debt, shares, or dividends.
Positive Operating Cash Flow:
Indicates the company generates enough cash from its core business to sustain operations.
Example: A company with consistent cash from sales can pay bills, employees, and debts without borrowing.
Negative Operating Cash Flow:
Suggests reliance on external funding (e.g., loans), which may signal instability.
Formula: Operating Cash Flow – Capital Expenditures (CapEx).
Positive FCF:
Shows cash left after maintaining/expanding assets.
Enables reinvestment, debt repayment, or dividends, enhancing long-term stability.
Growth vs. Liquidity:
Heavy investment in assets (e.g., factories, R&D) could signal future growth.
Frequent asset sales might indicate short-term liquidity issues.
Debt Repayment:
If operating cash flow covers debt payments, the company is less reliant on new loans.
Dividends/Buybacks:
Consistent dividends paid from operating cash (not debt) reflect stability.
Ending Cash Balance:
High reserves act as a buffer for emergencies or downturns.
Example: Apple’s $166 billion cash reserve (2023) provides immense stability.
Cash Flow Trends:
Stable companies show consistent positive operating cash flow over time.
Volatile/negative trends suggest risk.
Cash Flow vs. Net Income:
If cash flow > net income: Profits are "cash-rich" (stable).
If cash flow < net income: Profits may be tied to non-cash items (e.g., accounts receivable), risking liquidity.
Debt Coverage:
Operating Cash Flow / Total Debt ≥ 1 indicates strong debt repayment ability.
Stable Company:
Operating Cash Flow: $10M/year (consistent).
Free Cash Flow: $5M/year (after CapEx).
Debt Repayment: Covered by operating cash flow.
Unstable Company:
Operating Cash Flow: Negative.
Relies on Financing: Takes loans to pay bills.
Low Reserves: Struggles during downturns.
It’s one of the 3 main financial statements (along with the income statement and balance sheet), and it shows:
How cash is generated and used during a specific period.
It’s divided into three sections:
Operating Activities
Investing Activities
Financing Activities
The cash flow statement shows a company’s financial stability by revealing how much cash comes from its core operations and how it’s managed. If operating cash flow is positive and steady, it means the company can cover its costs and invest in growth, which is a sign of good financial health. But if cash flow is negative or the company relies heavily on borrowing or selling assets, that’s a warning sign. That’s why I see the cash flow statement as an important tool to truly understand a company’s financial situation.
Focus on essentials, cut costs, negotiate payments, seek funding, and ensure stakeholder alignment.
A Cash Flow Statement reflects a company’s financial stability by tracking cash movements in operations, investments, and financing. A positive operating cash flow indicates strong financial health, ensuring the company can sustain operations, invest in growth, and manage debts effectively.
A Cash Flow Statement demonstrates a company's stability by monitoring cash generated from operations, investments, and financing, thus showcasing its financial health and liquidity.
A Cash Flow Statement (CFS) is a key financial document that shows how a company manages its cash—how money flows in and out over a specific period. It is crucial for assessing a company’s financial stability, liquidity, and ability to sustain operations.
How the Cash Flow Statement Reflects a Company’s StabilityMeasures Liquidity & Short-Term Stability
Evaluates Operational Health (Operating Cash Flow – OCF)
Assesses Investment & Growth Potential (Investing Cash Flow – ICF)
Analyzes Debt & Financing Management (Financing Cash Flow – FCF)
Identifies Cash Flow Sustainability
✔ Consistently positive operating cash flow (shows a company’s core business is strong).
✔ Healthy free cash flow (FCF) (OCF minus capital expenditures)—indicates the company can expand and pay debts.
✔ Manageable debt repayments (financing cash flow not excessively negative).
✔ Cash reserves growing over time, allowing flexibility in financial decisions.
True. Cash Flow is important but the Income, Expenses and Investment statements is just as important.
