A study on cash flow statement analysis at kwality feeds (KEY IJP************324)

• P Durga Srivalli

Abstract

ABSTRACT Cash flow statement is an important tool to analyze the cash position of a business organization. It can denote changes in cash position during three financial years. The main purpose cash flow statement is to analyzing a company financial statement. The cash flow statement also provides information for the changes in business cash during a specific time frame by the sources and use of cash during the period from operating investing and the financial activities. Cash flow statements provide crucial information regarding the cash inflows and outflows of an organization over a specified period, offering insights into its liquidity, operating activities, investing activities, and financing activities. The primary objective of this research is to analyze how effectively cash flow statements facilitate decision-making processes for various stakeholders, including investors, creditors, and management.This research underscores the importance of cash flow statements as a fundamental tool for financial analysis and decision-making. It advocates for enhanced transparency and consistency in cash flow reporting practices to better serve the informational needs of stakeholders in today's dynamic business environment.They provide a clear picture of an organization's ability to generate cash and meet its financial obligations, thus aiding in risk assessment and strategic planning. Furthermore, the study highlights the challenges and limitations associated with cash flow reporting, such as potential manipulation and the complexity of reconciling cash flows with other financial statements.Additionally, case studies and empirical data are employed to illustrate practical applications and interpretations of cash flow statements in different industries and economic environments.Key findings suggest that cash flow statements play a critical role in assessing an entity's financial health beyond traditional income statement and balance sheet metrics.this study underscores the critical role of cash flow statements as a cornerstone of financial analysis and decision-making. It advocates for continuous improvements in cash flow reporting practices to meet the evolving informational needs of stakeholders in today's dynamic global economy.