Cash Flow Statement Basics Explained
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- čas přidán 29. 06. 2024
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Dive into the world of finance with our comprehensive guide on understanding the cash flow statement. Often overlooked yet vital, the cash flow statement reveals the effectiveness of a business in managing its cash. It's crucial for assessing a company's financial health.
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The Cash Flow Statement is one of the 3 main Financial Statements. It will show you how effective a business is in managing its cash.
✨ Key Highlights:
▪️ Cash Flow Statement Basics: Learn why the cash flow statement is an essential financial statement, alongside the income statement and balance sheet.
▪️ Three Main Sections: Explore the three parts of the cash flow statement: Operations, Investing, and Financing activities, and understand how each affects a company's cash flow.
▪️ Operations Cash Flow: Discover the two methods to calculate this - the direct and indirect methods - and why adjustments like depreciation, amortization, and working capital changes are crucial.
▪️ Investing and Financing Activities: Understand how cash flow from investing and financing activities is reported, including purchases of assets, issuing shares, and paying dividends.
▪️ Reconciliation to Balance Sheet: See how the cash flow statement ties back to the balance sheet, ensuring that the cash flow reported matches the net change in cash.
Most companies apply Accrual Accounting and it's important to understand that under this method revenue does not always equal cash in, and incurred expenses do not equal cash out. Therefore, don't make the mistake to just look at the income statement and the balance sheet. Focus on the Cash Flow Statement as well because it will show you where the company makes and spends its money.
00:00 How to Read a Cash Flow Statement
02:00 Cash Flow Statement - Overview
03:57 Cash Flow from Operating Activities
10:33 Cash Flow from Investing Activities
11:17 Cash Flow from Financing Activities
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#Accounting
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Leila, we need a complete accounting course like this, from beginners to advance. Accounting is hard to understand sometimes, but with you, everything gets better.
In all honesty, this is by far the best tutorial I have seen and come across on this topic, thank you so much Leila, simply incredible.
Glad you like it Andrew!
@@LeilaGharani Thank you Leila. I agreed with Andrew Maina. Thank you!
Totally agree great content
me too totally agreed great content
I totally agree thanks so much
Well, this def legit would have come in handy when I was taking my accounting classes, LOL. For you folks who are in the thick of learning this in school, take my advice and watch this video at least twice, maybe more. Understanding and creating a CASH FLOW STATEMENT was one of the 'top 5 most difficult concepts' during my entire bachelor's degree classes.
Good job I love how you explain things with examples makes it easier to understand
Just as brilliant as always, Waiting to watch this kind of videos more in the future. Thank you Leila Gharani for the uploading such a useful video.
Kudos for taking on a complicated but very important subject. It is vital to the Excel user who wants to do more than just tweak sales figures. It's great to have an instructor to go to with a such broad and practical knowledge. Thanks L!
I am really glad I found this channel !
AMAZING
its alright
Leila, you're A-M-A-Z-I-N-G. Thank you so much! I really appreciate how well thought the explanation was ( probably took a while to script) and how professional your video is! Real life examples help a lot. Many finance people tell you how it works, but they don't reference a real co's cashflow. Us newbies, have then a hard time taking the advice and applying it to understanding a company. Many Thanks again!
Thank you so much , now I understand the cash flow statement 🙏👍
I've been taking the online courses, getting the certificates, then I always return to Leila's videos for a deeper understanding of the topic. Thank you, Leila!!
This was super easy to understand for someone who hasn't done a CF in a decade. Thank you!
Great to hear, Jessica!
Great tutorial, Leila, thank you!
Best explanation of Cash Flow. Even, non finance / accounting people can follow it easily. Thanks Leila :)
Very clear explanation on cash flow. Thank you so much Leila, you are making a complex report into a simple one.👏👍
This is excellent, I like how you went into more detail than other videos.. Dont be scared to make longer ones! and ones involving analysis, would love to see those
This is the best for understanding the CF, thank you very much Leila! Hope more people see this video
:)
_This is a great video with simplicity and clarity of definitions and explanation. Great voice clarity btw._ TᕼᗩᑎK YOᑌ Leila Gharani.
Thank you for this very clear and neat video. I am amazed by your illustrations serving perfectly your talk !
Awesome as always !
Thanks for the kind feedback Erick!
Thank you for this break down of Cash Flows. I was a credit manager and use to doing ratios of AR turnover, etc. This is an eye opener to some of the chatter I would here from the folks in the Accounting department.
I have to say this is by far the best online video I have seen. It really breaks things down so it is easier to understand for anyone.
Hands down the BEST Financial Accounting video on You Tube!! Presented brilliantly, eloquently, it’s engaging and so easy to follow. Finally found a tutor I can understand! THANK YOU Leila.
Wow, thank you Chris!
Thank you so much! This video is very super easy to understand and helpful for my accounting class.
Truly no one shows like this before.. So many Thanks from my bottom of heart..❤. God bless you.
Excellent explanations with helpful animations Leila. Better than the classroom and overpriced textbooks.
I don’t know about you Leila but thx for your videos! They are so great, and you are so awesome and amazing I know! And also, I love you Leila!
Very informative and impactful by all extent, thank you
Thanks for the investing sheet! My mom lets me watch that all the time cause my mom is a teacher
Awesome and easy to understand! Well done, very helpful for me!
Great video! Well explained and easy to understand. Thanks much
Absolutely brilliant Leila. You have just nailed it :)
Lovely presentation, elucidated with no doubts left. ! good!
The MOST USEFUL youtube channel
Oh wow! Thank you Joaquim.
Your presentation was outstanding! :-)
I've watched several videos on this topic and this is the best one where it finally clicked for me.
Leila is such a great teacher. She makes complex issues look easy to do...simplicity and clarity exemplified.
Have not heard it better explained elsewhere. Some parts are a bit complex, yet useful. Thanks Leila.
Awesome. Thank you for your clear, concise explanation.
👍 Sweet & Simple. The way you explain the things is awesome
This was explained very well. Thank you!
I have been waiting for this video :) Thank you very much, it helped me a lot to understand better cash flow statement.
I'm glad it's helpful Gabriella.
Thanks for adding this. Do you plan to start a complete module on financial modeling? It would be great to have a separate playlist for that.
Outstanding explanation of the cash flow statement. Thank you!
In 13mins you've condensed 19 pages of my text book and made it so much more understandable, thank you!
I'm happy to hear it's useful!
Accounting simplified. Thanks :)
OMG this is the best-explained tutorial I have seen. Thank you so much for this
Wow, thank you Lucia!
Beautifully done 👏 I'm going to take up the challenge on uploading a video breaking down everything on Balance sheets, income statements and statements of flow as well! I hope I can execute as well as you did 😊
you are my life saver!!! very clear explanation. you make it a lot easier to understand
Thank you for this video, very helpful, clear and easy to follow.
This was very helpful thank you - a grateful business student
Thank-you so much for this extremely informative video.
Simple and clear explantion. Thanks.
The best explanation!! Thank you so much Leila
Wow. You just made a lot simpler. Thank you for sharing
Great explanation ❤️
Love from INDIA 🙏
i felt my brain grow, so much knowledge taught in simple words! 👍
excellent explanation. Thank you so much !!!
great Presentation. it made my understanding of cash flow easier.
Am glad you enjoyed
Thank you for your clear explanation and excellent presentation!
Thanks for sharing! I love it. Now , It gives a good solution to my problem in financing activities. Good job.
Thank you so much Leila for making accounting concepts very easy to understand.
You're very welcome!
Thank you Leila! Searched for video to quickly recap on Cash Flow statement logic and this one is great one.
You're so welcome!
Great tutorial. I would recommend my clients to watch! Ty Leila.
Glad you like it.
Leila, you are amazing! Thank you very much for your knowledge and passion to share it! With your help I passed the professional exam to my work!
Can you help me in learning of accounting now I studying B's accounting and finance
This was a very helpful explanation, thank you!
One of the best tutorials I have seen on reading CF statements. Well done
Glad you enjoyed it!
Wonderfully clear and nice to look at.
You do a phenomenal job explaining complex concepts. Thank you for the help.
Subscribed and am eager to see what else you decide to talk about!
Welcome aboard, Justin!
Dear Leila, once again thanks for your um measurable contribution. Stay Blessed
My pleasure Robert. Glad to have you here.
Very well explained, Leila!
Amazing tutorial! Really helped a lot
Awesome video - helped me revise for accounting exam. Thanks!
You are an amazing teacher. Your material is very explanative.
Thank you! 😃
I am glad that I can understand the cash flow statement and how that works Thank you so much Leila!
You're so welcome!
Excellent video! 😊
TOP NOTCH VIDEO! SUPER HELPFUL, THANKS
Right on point Dear. Thank you it's useful for my current course.
one of the best tutorial for people with bookkeeping background. although the indirect will be a bit vague for non accountant.
Well explained thank you!
Thank you so much. I was wondering, in the cashflow statement why we don't deduct the depreciation like in the income statement and here I got my answer! Thanks a lot once again!
I'm more than excited to stumble on this.👍
Thanks for the thumbs up :)
Lovely explanation of CFS. Thanks.
Kudos! Bravo!! Excellent!!!. This is a great lecture, well delivered,highly impacting with nice presentation that is very very easy to understand.
Fantastic video... article and method of teaching. Came to it looking for one piece of information and finished it with way more than expected. Had actually typed up a comment with a question from a confusing portion of the video but then found your link to the article and was able to work it out myself. That was amazing for me to feel that I did it on my own; but then of course huge credits must be given to you and your video, your article and method of explaining this topic. Well done and thank you!
Awesome, thank you!
Good job leila, for making me understand in laymans language....
Really great video @LeilaGharani !
I used it as inspiration for a couple of my newsletters.
If I may elaborate a bit on the investing section of the cash flow statement. The purchase of property, plant, and equipment (fixed assets) in particular. When there is an entry here, it will usually be large and negative. It could very well drive your cash flow negative for the period.
KEEP IN MIND that this is an *investment* in your company's future. The expectation is that you will see cash inflows (in your operations section) over time that amount to much more than the cash outflow.
Practicing for exam and luckily I found this channel! Now can 100% pass my exam! THANKS ALOT FOR YOUR AMAZING WORK!
Best of luck!
Thank you for creating this video because I've always had trouble until I watched your video understanding the cash statement the other statements are pretty clear and straightforward but I always found the cash flow statement rather confused
God bless you young lady, I struggled a lot with all these financial topics back when I was in college. And you make it look so simple, thanks a lot
You are so welcome, Fernando!
Good video. Simple to understand.
Thanks.. was strugling to understand on inventory part!. This is made it clear!..
This is actually a great video. Well put together. Of course, there are many more complexities to it but a good high-level overview of the basics (as the title describes).
Glad you like it Jonathan. Yes, it's only a start to learning about the cash flow statement.
I really suggest the same with Jonathan if you can do an accounting class from beginning to advance would be very much helpful
Many thanks for the detailed explanation.
Thanks a lot for sharing! This will improve my undrstanding of those terms to use English! Regards!
Valuable info..thanks!
The explanations are so simple to understand the nature of cash flow. Thank you so much for your video. It can support my business well. I am really appreciate it.
Great to hear!
Thanks. Very clear and informative video
Clear explanation, Thank you so much.
Thank you for simplifying this info and process for those of us who arent accounting-savvy
I just had to subscribe. The way she talks is amazing. Clearly understood. How i wish you taught everything.
Welcome aboard :)
Nicely done. Thank you!