Cash Flow Analysis

Overview

This skill provides a structured 5-step methodology to analyze a company's Statement of Cash Flows, enabling accurate assessment of financial health, earnings quality, and capital allocation strategy.

Analysis Workflow

Follow these steps sequentially when analyzing a cash flow statement:

1. Operating Activities Evaluation

Assess the core business's ability to generate cash.

• Look for non-cash adjustments (D&A, Stock-Based Compensation).
• Analyze Working Capital changes (Inventory, A/R, A/P).
• Reference: Use references/analysis-framework.md (Step 1) for detailed checks.