How to Read a Cash Flow Statement Without Getting Overwhelmed

Rows of numbers and accounting jargon can make the cash flow statement feel like the most intimidating document in investing, but it doesn’t have to be.In fact, this single statement often reveals the real story behind a company’s reported profits.While earnings can be influenced by accounting assumptions, cash flow shows the actual money moving in and out of the bank.Ultimately, strong operating cash flow shows that profits are backed by real cash, which is what actually pays for dividends, debt reduction, ...