As a follow-up to my popular post ‘How to read any P&L statement’, I decided to write ‘How to read any cash flow statement’. Cash flow is an easy to understand concept. But the way of calculating it is not so simple.
Please note: I am a financial controller myself. I know this is a very simplified view of a piece of information that is intrinsically difficult. I simplified it for the benefit of the reader and to increase her understanding. My in this blog is to ‘give people an extra edge’ and aims at managers, business men, economics students, MBA aspirants and anything in between. Please also have a look at the schedule included below.
The basis of the cash flow statement is the P&L. But also the Balance Sheet, notably the fluctuations in it, play a big role as well. The start is the bottom line of…
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