Analysts find the statement of cash flows more helpful for spotting weakness than for gauging success.

Question

Quizplus · Accepted Answer

The statement of cash flows provides insight into a company's ability to generate and manage its cash resources. By analyzing the statement of cash flows, analysts can identify potential weaknesses in a company's financial position, such as a negative cash flow from operations or a high level of debt. However, the statement of cash flows alone may not provide a comprehensive picture of a company's overall success, as other factors such as profitability, market share, and customer satisfaction also play important roles.

Analysts Find the Statement of Cash Flows More Helpful for Spotting