What is a cash flow statement and how to find it in moomoo?

Investing with moomoo joined discussion · Jun 17, 2021 17:19

What is a cash flow statement and how to find it in moomoo?

Financial statements are written records that convey the business activities and the financial performance of a company. You can obtain much information from the statements.

Read: SEC Filings: What are they? How can they assist trading?

How to quickly spot key information in SEC filings?

The cash flow statement (CFS) displays the company's cash inflows and outflows. It complements the balance sheet and income statement.

The CFS normally divides into 3 sections, namely operating activities, investing activities and financing activities.

Operating activities

The operating activities on the CFS include any sources and uses of cash from running the business, for example, selling products and purchasing raw materials. Cash from operations includes any changes made in cash, accounts receivable, depreciation, inventory, and accounts payable.

Investing activities

Investing activities display whether a company is making investments into the long-term future of the company. For example, changes in equipment, assets, or investments relate to cash from investing.

Financing activities

Financing activities include the sources of cash from investors or banks, as well as the uses of cash paid to shareholders. Financing activities include debt issuance, equity issuance, stock repurchases, loans, etc.

What does a cash flow statement tell you?

First of all, you see on the bottom of the statement, the beginning cash position, current change in cash and end cash position. This tells you how much cash the company owns at the beginning or at the end of the accounting period and how much cash is generated or lost during the time.

Then, if you dig into details, you will find different amounts of cash generated by each of the 3 big sections. The company is generally healthier in the long run if it generates most of the cash from operating activities. Huge cash inflow from financing activities indicates strong access to capital and big cash outflow from investing could mean investments in fixed assets.

Where to find cash flow statements in moomoo?

Desktop:

1. Look at the right side of the stock page and click the tab 'Analysis'.

2. Click tab 'Financial'.

3. Roll the mouse wheel and move to the bottom. Click 'Cash Flow Statement'.

4. You can read the statement after the 'F10' window pop up.