Company analysis
What is cash flow statement?
A record of cash actually entering and leaving the business.
Explained in more detail
Profit is an accounting judgement involving estimates. Cash is a fact. A company reporting rising profit while cash from operations falls is the single most common early warning sign in company analysis.
An example
For instanceA sale recorded as profit is not cash until the customer actually pays.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time cash flow statement appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.