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How Stock Fundamentals are Derived from Company Financials Part 3: Cash Flow Statement

File folderThis is the third and final installment of my series which looks at how company fundamentals are derived from the financial statements they’re based on. Previously we looked at the balance sheet and income statement, and in this article we’ll explore the often misunderstood cash flow statement. The cash flow statement ties the other financial statements together, in that it examines how the balance sheet changes, based on income and cash flow into¬†or out of the company, and is a good measure of the company’s liquidity. Continue reading