Module 3   Fundamental Analysis (Video Series)Chapter 6

Understanding the Cash Flow Statement

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6.1 – The Cash Flow Statement

The Cash flow statement is a significant financial statement, as it reveals how much cash the company is generating. Is this information not shown in the P&L statement, you may think? Well, the answer is both a yes and a no. Let us learn more in this video.

In the following video, we will collectively learn more about financial statements.

We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.

Key takeaways from this chapter

  1. The Cash flow statement gives us a picture of the company’s actual cash position.
  2. A legitimate company has three main activities: operating, investing, and financing.
  3. Each activity either generates or drains money for the company.
  4. The company’s net cash flow is the sum of operating activities, investing activities, and financing activities.
  5. Investors should specifically look at the cash flow from the company’s operating activities.
  6. When the liabilities increase, the cash level increases and vice versa
  7. When the assets increase, the cash level decreases and vice versa.
  8. The net cash flow number for the year is also reflected in the balance sheet.
  9. The Statement of Cash flow is a valuable addition to a company’s financial statements because it indicates its performance.


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  1. Ashish says:

    Thanks for posting this video. Can you pls. tell – where to find the cash flow statement for particular company like Bajaj-auto? I could not find the table mentioned in your video on their website. Pls. give more info on that. Moreover, apart from those 3 rows like operating, investing and financing, I am seeing many other data on any company cash flow statement on ET. So, pls. go through any in details.

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