Start by looking at cash flow from operations, the section that tells you how much money the company’s main business is actually generating. If that number is positive and growing over time, it’s ...

A company reports revenues and expenses on its income statement. Since most companies use accrual accounting, the income statement reveals little about cash flowing into and out of the business. To ...

A cash flow statement consists of three sections: operating, investing and financing. Companies report investing and financing activities directly on a cash basis, but often use the indirect method to ...