Pipeline Check: What a Cash Flow Statement Actually Tells You

Profits can be an opinion; cash is a fact. A cash flow statement splits a company�s money into three buckets: operations, investing, and financing. Strong, growing cash from operations is the healthiest signal — it means the core business funds itself. Heavy financing inflows (new debt or share sales) propping up a company that burns operating cash is a yellow flag. Read all three together before you trust a headline earnings number.