Cash Flow Statement
A cash flow statement is a financial document that summarizes the amount of cash and cash equivalents entering and leaving a company over a specific period, typically quarterly or annually. It is one of the three core financial statements used in accounting and finance, alongside the income statement and balance sheet, and is crucial for assessing a company's liquidity, solvency, and overall financial health.
Developers should learn about cash flow statements when working on financial software, fintech applications, or business analytics tools to ensure accurate data modeling and reporting. It is essential for roles involving financial analysis, budgeting, or investment decisions, as it helps track operational efficiency, investment activities, and financing strategies, providing insights into a company's ability to generate cash and meet obligations.