How To Read A Cash Flow Statement

In this lesson, the speaker uses four different companies to demonstrate what a cash flow statement looks like and how it might be used. The cash flow statement consists of three main components: operating activities, investing activities, and financing activities. The teacher uses Walmart as an example of a strong cash flow statement, as it shows positive trends in operating activities and consistent investing activities. On the other hand, Sears’ cash flow statement shows negative trends in operating activities, while Kodak’s cash flow statement shows poor performance in all three components. The cash flow statement can provide insight into a company’s financial health and trend direction.