If you are of the opinion that only good sales of a company define its financial position, STOP! 🤚 Because while sales do determine a company's revenue, an investor must never neglect whether it's coming from cash or credit. That's where a proper understanding of Cashflow Statements comes into play!
What will you learn?
As the famous saying goes, “Cash is the King”; it is true for companies as well. Cash being the most liquid asset, is very important for any business. Cash in the business serves many purposes, such as emergency funds, serving sudden investment opportunities, debt servicing and, of course, the day-to-day operational needs of the company.
But how does it serve your purpose of investing? By analysing the cash flows of the company, you can get many insights that will help you in taking informed investment decisions. The efficiency of a business in generating cash determines its sustainability and liquidity position.
So, there are certain cash inflows and outflows in the company, which are categorised into three heads:
Cash Flow from Operational Activities,
Cash Flow from Investing Activities, &
Cash Flow from Financing Activities.
These three include all the cash flows. In this course, we will learn why it is important to analyse, how to analyse each head, how it impacts the overall cash flows of the company and, most importantly, how it will help you take better investment decisions by calculating and analysing certain ratios. Along with the P&L and balance sheet analysis, the cash flow statement can help you spot some red and green flags in the business.
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Quick, quicker, quickest! This course falls under the sprint category and can be completed in 25 minutes.
Along with the P&L statement and Balance Sheet, it's also important to analyse the company's cashflows, which indicates the company's liquidity, cash-generating and management capacity. In this course, we will learn how to analyse the cashflow statement and how it helps investors make better investment decisions.
No, you do not need to install any specific software for this course. However, it is advised for a user to have an active Internet connection and an updated web browser for a seamless learning experience.
Finology allows you to access all its tools and courses by subscribing to Finology One. Hence, you can access this course as long as your subscription to Finology One is active.
About Finology Quest
Quest is a 101 guide for anyone who wants to learn investing. The aim of these online finance courses is to make people financially literate and to make them understand the essential financial concepts and learn company analysis, so that one can know how to create & grow their wealth in the stock market.
Why choose Quest?
Quest will make you aware about investing and the secret to growing wealth. As against popular opinion, you do not always need to earn more money to be rich. In fact, financial awareness is the key to wealth creation & Quest will help you to make this journey simpler. The courses in Quest are easy to understand and explained using close-to-reality scenarios which makes learning fun and relatable. Plus, you can access it anytime and anywhere on the go, which is a cherry on the top!
For whom the Quest is?
Quest is for anybody who wants to enjoy learning finance and investing on the go. The aim of Quest is to make people financially aware. So, if you are someone making your babysteps into the markets, look no further. From personal finance to investing, Quest is your one-stop platform for almost everything finance!
The companies discussed on this website are solely for educational purposes and should not be construed as investment advice. We may or may not hold positions in any or all of these companies. However, these aren't recommendations and hence, we held no responsibility for any consequences of investment actions based on these videos.