Course · 20 min read

The Cash Flow Statement (Varsity)

Karthik Rangappa, Zerodha Varsity · zerodha.com Free Beginner India

Varsity's explanation of the cash flow statement in three parts, operating, investing and financing, and why profit and cash differ.

  • Cash flow is split into operating, investing and financing activities.
  • Operating cash flow is the one that shows whether the business funds itself.
  • A profitable company can still run short of cash when receivables grow.
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It answers 2 questions

  1. How should I manage cash flow so my startup doesn't run out of money?
  2. How do I read a P&L, balance sheet, and cash flow statement?

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