Analysing annual reports (part 3)

The cash flow statement—because cash doesn’t lie

WHEN EVALUATING the financial health of a company, many people focus on the income statement or the balance sheet.  While these are essential tools, the cash flow statement often provides the clearest picture of a company’s real financial strength.

By showing the actual movement of cash in and out of the business, this statement highlights whether an organisation is truly generating enough liquidity to sustain operations, invest in growth, and reward stakeholders.

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