The cash flow statement, or statement of cash flows, gives us a look into how much cash the company generates over a specified accounting period.

Within the cash flow statement, there is a breakdown of operating activities, investing activities, and financing activities.

At the very bottom of this statement, you’ll notice the ending period “cash, cash equivalents and restricted cash, ending balances” typically.

This gives investors an idea of the company’s ability to increase its cash over time.

Of course, you could probably guess, the more cash on hand, the more financially sound a company is