What Is a Cash Flow Statement?
A cash flow statement is a financial statement that shows how cash moved into and out of a business during a period, divided into operating, investing, and financing activities. Because profit includes non-cash items and timing differences, a profitable company can still run short of cash, which this statement reveals.
Three Sections
Operating activities come from day-to-day business; investing activities include buying or selling equipment; financing activities include loans, repayments, and dividends.
Free Cash Flow
Operating cash flow minus capital expenditures is commonly called free cash flow.
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🔗 Related Terms
More Business & Sales Terms
- Accounts Payable
- Accounts Receivable
- Average Order Value (AOV)
- Break-Even Point
- Cash Runway
- Churn Rate
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.