What is the most important section of the statement of cash flows for investors?

What is the most important section of the statement of cash flows for investors?

What is the most important section of the statement of cash flows for investors?
All sections of the cash flow statements are important. Net income shows how much money comes from operations after the operational and financial risk is accounted for. Depreciation tells you how much actual cash flow the company has. The investment section tells you about the present and future investments targets and the financing section tells you how you finance your operations and capital equipments. Ultimately other sources and uses of funds tell you what each does for the business. Ultimately the years cash balance is calculated which helps you decide the near term liquidity of your company.
Reply:Positive free cash flow is good. That means the company is able to generate more money to fund its operations than it has to put/invest in the business. It will also tell you how the core business is operating and its ability to generate cash for the company.. It would also tell you if there were certain non-business related financing that has generated cash for the company such as new stock issuance/loan/bond issuance.
Reply:there isn't one section more important than another. if you just look at operations, you might miss that the company has been borrowing lots of money or investing lots of money in losing projects. i like to see companies that generate lots of operating cash, have an even level of capex (close to depreciation amounts) paying off debt and buying back their own shares.
Reply:the most important section is where the money is coming from. It will help you determine if the company is sustainable. See http://ibooyah.com for investment matters and stock picks.
Reply:I would have to pick the cash flows from operations. This will tell you the cash flow the company is able to generate from its regular line of business. A company that is not generating a lot of cash flow from operations will go bankrupt sooner or later, because it will not be able to pay its regular expenses.