Reading the cash flow
The cash flow statement shows where cash came from and where it went, in operations, in investing and in financing. Profit is an opinion about the period; cash is a fact.
Net cash from operations = Profit ± Non-cash items ± Change in working capital
Why it matters
Profit can be reported while the bank balance falls, for example when customers pay late or when stock is bought ahead. The cash flow is where this shows.
Where it appears in a CFO+ model
- In the cash flow statement that the model produces from the same inputs as the other statements.
- In the cash view of the activity, which tracks the cash balance period by period.
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Activities where it shows up
This concept belongs to a section that every CFO+ model asks, whatever the activity.
No figures are published: a definition and a formula only.