Understanding Cash Flow Statements: An Investor’s Secret Weapon
The cash flow statement—often overlooked but absolutely vital. You see the headlines about income statements and balance sheets, but the real story is told in cash flow.
The cash flow statement—often overlooked but absolutely vital. You see the headlines about income statements and balance sheets, but the real story is told in cash flow.
Two documents stand out when it comes to understanding a company’s financial health — the balance sheet and the income statement. More than just numbers on a page, these powerful tools give insight into how a company operates, where its money comes from, and how it manages its resources.
Over the past few years, more and more investors have concluded that their financial objectives should be not only profitable but also moral.
Think about an investor who invested their entire capital in a tech company in the 1990s with the expectation of getting a huge return on investment, only for the dot-com bubble to burst.