Fundamental Analysis of the Cash Flow Statement

Primary purpose of this article is to discuss fundamental analysis of the Cash Flow Statement. Cash flow statement quite obviously identifies whether cash is flowing in or beyond a company. There are three sections. Firstly, Cashflow from operations. Secondly, Cashflow from investments. Lastly, CF via financing activities. Money gained from marketing new shares or issuing bonds provides positive profit. The company might get positive profit through the issuance of new shares or bonds but it really is bad for the investors as their shareholdings are diluted and bonds need to be repaid with interest.