Download Tracker and Log sheet for personal, professional and business use. Cash Flow Statement is a free tracker and log based Microsoft Excel template. This helps you in organizing your activities.
Understanding Cash flow statement
A cash flow statement is a crucial financial statement that displays the cash inflows and outflows within a business during a specific period. This report presents the changes in a company's cash and cash equivalents, providing insight into the company's liquidity and financial health.
A typical cash flow statement includes three sections:
- Operating activities: This section shows the cash inflows and outflows of a company's core business operations, such as sales, inventory purchases, and supplier payments.
- Investing activities: This section displays the cash inflows and outflows related to a company's investments in long-term assets, including property, plant, equipment, and investments in other firms.
- Financing activities: This section shows the cash inflows and outflows related to a company's financing activities, such as issuing or repaying debt, paying dividends, and buying back stock.
At the bottom of the cash flow statement, the report provides the net increase or decrease in cash and cash equivalents, along with the starting and ending balances of cash and cash equivalents. By analyzing the cash flow statement, investors and analysts can gain a better understanding of a company's ability to generate cash, meet financial obligations, and invest in future growth.
Why Cash flow statement is important ?
The cash flow statement is an important tool for evaluating a company's financial health. Because, It provides insight into how the company is managing its cash and where cash is coming from and going to. By analyzing the cash flow statement, investors and analysts can gain a better understanding of a company's ability to generate cash, meet its financial obligations, and invest in future growth. Here are some of the key reasons why the cash flow statement is important:
- The cash flow statement helps to evaluate a company's liquidity, or its ability to meet short-term financial obligations.
- The cash flow statement provides a clear picture of a company's cash flow over time.
- The operating cash flows section of the cash flow statement helps to evaluate a company's operating performance.
- The cash flow statement helps with financial planning by providing insight into a company's cash flows.
- The cash flow statement helps investors to make informed investment decisions by providing valuable information about a company's financial health and performance.
About Cash flow statement format in Excel
Once you download this free cash flow tracker excel template, you can use this Excel template to document cash inflow and cash outflow for a company. Start by entering the income and expenses information for the three cash categories including operating, investment, and financing. Also, Total operating, investment, and financing expenses and final cash balance will be calculated automatically.
Features of this tracker and log excel format
Here are some of the salient features of this template -
Tracker templates are important because they can save users time and effort by providing a starting point for tracking data or projects. These templates can be used for a variety of purposes, such as tracking sales leads, project progress, expenses, or inventory.
Using tracker templates can also help ensure consistency and accuracy in data tracking, as they provide a standardized format for entering and organizing data. This can be particularly useful when multiple people are involved in tracking data or working on a project.