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  • Importance of Cash Flow

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    Lana Hatabeh
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    The document discusses the importance of cash flow for businesses. It states that cash flow is vital because it allows a company to pursue opportunities and withstand challenges. The document also explains that cash flow statements collect and report information about all cash inflows and outflows during a period, including operating, investing, and financing activities. Understanding cash flow is essential for business analysts to evaluate a company's financial health and sustainability.

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    “Importance of Cash Flow”

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    The document discusses the importance of cash flow for businesses. It states that cash flow is vital because it allows a company to pursue opportunities and withstand challenges. The document also explains that cash flow statements collect and report information about all cash inflows and outflows during a period, including operating, investing, and financing activities. Understanding cash flow is essential for business analysts to evaluate a company's financial health and sustainability.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    13 views6 pages

    Importance of Cash Flow

    Uploaded by

    Lana Hatabeh
    The document discusses the importance of cash flow for businesses. It states that cash flow is vital because it allows a company to pursue opportunities and withstand challenges. The document also explains that cash flow statements collect and report information about all cash inflows and outflows during a period, including operating, investing, and financing activities. Understanding cash flow is essential for business analysts to evaluate a company's financial health and sustainability.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 6

    Data Analytics and Business Intelligence

    “Importance of cash flow”


    What do we mean by Cash Flow?

    1 All rights are reserved to HTU 2022


    Why is Cash Flow so important?
    Cash is king: he who has cash can chose what e wants and
    buy it

    Lack of cast can choke a company

    Many companies did not survive because of poor cash flow


    practices

    2 All rights are reserved to HTU 2022


    CASH FLOW STATEMENTS

    Collect all information related to the flow of cash in and out


    during a certain period of time.

    3 All rights are reserved to HTU 2022


    Cash flows
    Cash flows from operating activities
    Cash inflows from revenues – (Cash outflows from expenses)
    Cash flows from investing activities
    Cash inflows from investment/ returns – (Investment)
    Cash inflows from sales of fixed assets – (Cash outflows for
    purchase of fixed asset)
    Cash flows from financing activities
    Cash lending – (Cash borrowing)
    Contribution in cash – (Return of owners’ equity in cash)

    4 All rights are reserved to HTU 2022


    What does this all mean to a business analyst?

    5 All rights are reserved to HTU 2022

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