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@elkingfathy200: N
elkingfathy200
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Region: GB
Sunday 08 November 2026 10:39:01 GMT
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Profit can lie. Cash can’t. A company can report a profit on paper and still be running low on actual money, which is exactly why the cash flow statement matters more than most people give it credit for. It’s split into three parts. 1- Operating activities: show cash made or lost from the actual business, this is the number that matters most, and it should usually be positive and growing. 2- Investing activities: cover money spent on or earned from long-term investments, often negative, and that’s normal, it usually just means the company is investing in its own growth. 3- Financing activities: track cash moving between the company and its lenders or shareholders, worth checking whether a company is funding itself by borrowing more, rather than earning more. Put it all together and you get Free cash flow, (operating cash flow - what it costs to maintain and grow the business) This is what’s actually left over, and it’s the number that tells you the truth behind the profit figure. Swipe through, and save this for the next earnings report you read. 📌 Education, not advice. #investing #stockmarket #investment #PersonalFinance #stocks
@doctorclaudia, we're ready.
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