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so why isn't there a single cash flow view/report that all businesses use rather than all of these bloated and apparently ineffective methods? PL etc..
by Solvency 2y ago
so why isn't there a single cash flow view/report that all businesses use rather than all of these bloated and apparently ineffective methods? PL etc..
- joncrocks 2y agoCash flow is not just what is happening, but what will happen. i.e. the difference between when money goes out vs. it coming in. If you are selling widgets for $1.20 and buying them for $1, and they are delivered after you order them, you are limited on how many open orders you can have at any point in time even though you make money on each order. A companies cash flow will be dependent on employees, capital expenditures, money for stock, returns rates, tax requirements etc. etc. So it's heavily dependent on what type of business is being run and the specifics of how the business is being run.
- PopAlongKid 2y agoThere is a cash flow report that all (public) businesses use -- as I said, it is one of 3 basic reports that capture different aspects of the companies financial performance. You need all 3 for a complete picture. The cash flow statement helps "unobfuscate" certain aspects of the other two reports (which I hope you agree are not pure obfuscation). For example, see this Apple Corp. financial report[0] -- it includes a statement of cash flows. I think you'd find that all other companies required to publicly share their financials will include the same report. [0]https://www.apple.com/newsroom/pdfs/FY22_Q4_Consolidated_Financial_Statements.pdf https://www.apple.com/newsroom/pdfs/FY22_Q4_Consolidated_Fin...