kassavirrastaan

Kassavirrastaan is a financial term that translates from Finnish to "cash flow statement" in English. It is a core financial report that provides a summary of how much cash and cash equivalents have moved into and out of a company during a specific period. This statement is crucial for understanding a company's liquidity, solvency, and financial flexibility.

The cash flow statement is typically divided into three main activities: operating activities, investing activities, and financing activities. Operating activities report the cash generated from the company's primary business operations, such as the sale of goods or services. Investing activities detail the cash used or generated from the purchase or sale of long-term assets, like property, plant, and equipment, as well as investments in other companies. Financing activities show the cash flows related to debt, equity, and dividends, including the issuance or repurchase of stock and the payment of interest and dividends.

By analyzing the kassavirrastaan, stakeholders can assess a company's ability to generate cash from its core operations, its investment strategies, and its funding sources. It helps in determining if a company has enough cash to meet its short-term obligations, fund its growth, and pay its shareholders. Unlike the income statement, which can be influenced by accrual accounting principles, the cash flow statement focuses on actual cash movements, offering a more direct view of a company's financial health.