Cash Flow Analysis Excel Template

Description
Cash flow is the amount of cash and cash equivalents, such as securities, that a business generates or spends over a set time period. Cash on hand determines a company’s runway—the more cash on hand and the lower the cash burn rate, the more room a business has to maneuver and, normally, the higher its valuation.
Cash flow differs from profit. Cash flow refers to the money that flows in and out of your business. Profit, however, is the money you have after deducting your business expenses from overall revenue.
Let’s first look at preparing the operating cash flow statement. The line items that are factored into the company’s net income and are included on the company’s operating cash flow statement include but are not limited to:
Cash received from sales of goods or services
The purchase of inventory or supplies
Employees’ wages and cash bonuses
Payments to contractors
Utility bills, rent or lease payments
Interest paid on loans and other long-term debt and interest received on loans
Fines or cash settlements from lawsuits
The next component of a cash flow statement is investing cash flow. That bottom line is calculated by adding the money received from the sale of assets, paying back loans or selling stock and subtracting money spent to buy assets, stock or loans outstanding.
Finally, financing cash flow is the money moving between a company and its owners, investors and creditors