Cashflow Statement Analysis: Key Insights for Investors


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!

3 Modules

30 min


Course Outline

What will you learn? 

  • Introduction to Cash flow Statement
  • Why to analyse a Cash flow Statement
  • Components of a Cash flow Statement
  • Analysis of Infosys Cash flow Statement
  • Calculation and analysis of Ratios. 

About Course

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.

What you will get?





Course Syllabus

  • Key Heads under Cashflow Statement
  • Components of a Cash Flow Statement
  • Key Ratios related to Cashflow Statement


Need answers? Find them here

There are no prerequisites for the course. However, it would be helpful if you first go through "How to Analyse a Profit & Loss Statement" and "How to Read a balance sheet", as it would help to analyse all three financial statements of any company. 

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.

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