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What is cash flow statement, operating investing financing cash flow — complete Hindi guide.
Published by The Retail Trader · AUG 03, 2026 · Features
What is cash flow statement, operating investing financing cash flow — complete Hindi guide.
Cash flow statement shows where the company's cash came from and where it went. Profit and cash flow may differ — the company may be profitable but cash negative.
Cash from core business. Cash came from sales, went to suppliers, salaries went.
Keep these two points in mind:
• Positive = Healthy — Business is generating cash
• Negative = Warning — Business is eating cash
Cash from investments. Bought new machinery, sold property, made investments.
Keep these two points in mind:
• Negative = Normal — Company is investing (growth signal)
• Positive = Company is selling assets — sometimes red flag
Cash from debt and equity. Took loan, repaid loan, issued shares, gave dividend.
Keep these two points in mind:
• Negative = Debt repayment is happening — Usually good
• Positive = Company is taking debt – Check why
Keep these four points in mind:
• Operating CF: +₹500 Cr ✅ (positive, healthy)
• Investing CF: -₹300 Cr ✅ (investing in growth)
• Financing CF: -₹100 Cr ✅ (repaying debt)
• Net Cash Change: +₹100 Cr ✅ (cash is increasing)
Best sign: Operating CF positive, Investing CF negative (investing), Financing CF negative (debt repay).
Keep these four points in mind:
• Profit positive, Operating CF negative — Earnings quality poor — paper profit, not cash
• Operating CF negative for 2+ years — Business model problem
• Financing CF positive for long — company running on debt
• Investing CF positive consistently — Selling Assets
Keep these three points in mind:
• Measures — Cash Flow: Actual cash, Profit: Accounting profit
• Manipulation — Cash Flow: Difficult, Profit: Easy (accounting entries)
• Timing — Cash Flow: When cash actually moves, Profit: When earned (accrual)
Keep these points in mind:
• 📌 CASH FLOW STATEMENT
• THREE TYPES:
• 📊 Operating CF — Core business cash
• 📊 Investing CF — Investment activities
• 📊 Financing CF — Debt & equity activities
• HEALTHY SIGN:
• ✅ Operating CF positive
• ✅ Investing CF negative (investing)
• ✅ Financing CF negative (repaying debt)
• RED FLAGS:
• ❌ Profit positive but Operating CF negative
• ❌ Operating CF negative for 2+ years
• ❌ Financing CF positive for long (debt heavy)
• ❌ Investing CF positive (selling assets)
• WHY IT MATTERS:
• 📊 Profit can be manipulated, cash can't
• 📊 Positive Operating CF = Real money
• 📊 Companies die from cash crunch, not profit crunch
Keep these points in mind:
• How to Analyze a Stock | What is EPS? | What is PE Ratio?
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.