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Evaluating Cash Generation Through Financial Statements
December 10, 2023
How are financial statements used to assess a company's ability to generate cash?
Financial statements, particularly the cash flow statement, play a pivotal role in assessing a company's cash generation abilities. This statement delineates cash inflows and outflows from operating, investing, and financing activities. Analyzing operating cash flows against capital expenditures, debt payments, and dividends helps gauge a company's capacity to generate cash and sustain its operations.
Tags : Cash Generation , Financial Statements , Analysis