Cash flow is regarded as a vital metric and true picture of a company's financial health. Because reported revenues may not have been collected, and, expenses recorded may not have been paid, cash is a key indicator of a company's true value and health.
If cash from operations is consistently greater than Net Income, the company's earnings are said to be of "high quality" because it indicates that revenue is converting to cash. If the cash is consistently less than Net Income, then some reported income is not converting to cash, and may be a signal that there are problems with operations.
To view a cash flow statement, do the following:
- Click Reports in Flare's main menu (1 below) and click the Cash Flow Statement tile heading.
- To run the Cash Flow statement, choose a date range from the Date Preset or choose “Custom” from the preset (3 below) and select a custom date range (4). Check Years for comparison checkboxes to view a side-by-side comparison of cash flow for selected years (5 below). Leave unselected to view only the current fiscal year.
- Click the Run Report button (6 above).
- Print the Cash Flow statement (7 above) or export as PDF (8), CSV, XLS or XLSX (9) .
- Toggle categories open and closed to view accounts within each category (A).
Current year is the default time period.
View all financial reports available in Flare.