rahavoogude

Rahavoogude is the Estonian term referring to cash flows—the movements of cash into and out of a business during a given period. It denotes the actual liquidity changes resulting from a company’s activities and is reported in the cash flow statement, a financial statement that complements the income statement and the balance sheet by showing cash-generating capability rather than accrual earnings.

The cash flows are typically divided into three main categories: operating activities, investing activities, and financing activities. Rahavoogud operatsioonidest reflect cash generated from or used in a company’s core business operations. Rahavoogud investeerimisest cover purchases and sales of long-term assets and other investments. Rahavoogud finantseerimisest include cash flows from borrowing, repayment of debt, equity transactions, and dividend payments. The net change in cash equals the sum of these three components. There are two common preparation methods: the direct method, which lists actual cash receipts and payments, and the indirect method, which starts with net income and adjusts for non-cash items and changes in working capital.

Significance-wise, rahavoogude provide insight into a company’s liquidity, solvency, and ability to fund operations, repay debt, and finance expansions. Analysts often consider cash flow quality and, in some contexts, free cash flow—the cash from operations minus capital expenditures. International accounting standards such as IFRS and US GAAP govern cash flow reporting, and in Estonia, many entities follow IFRS, ensuring comparability across jurisdictions.