Session 4: The Statement of Cash Flows

In this session, I look at the statement of cash flows, where the presumed end game is explaining the change in the cash balance of a company, but along the way, you are provided information on how much cash flows a company is generating from operations, investing and financing, and why this information can help in financial analysis.

[crepituss]

I have a few courses that are supposed to cover this kind of thing which I actually paid for on udemy that aren't half as clear, concise, and useful as these are. Thanks!

[xgum]

hard-working lecturer. helpful to this MAcc student.

[MarioHernandez-fejc]

This excellent video needs to be mandatory to all accounting students after their first lecture on the subject. Thank you very much for sharing your knowledge and your time Professor!

[gabrielalexander]

The ending part where you laid out how to find out about free cash flows to equity was such an A-HA moment for me! 🙏

[kevindeng]

Thanks for your sharing all the time, Mr.Damodaran!

[tomaszstawarz]

Wow, finally someone explained this so well and clear! Big thank you!

[GelRolNiX]

I love how the comments under Prof. Damodarans content are exclusively positive :D
not that i would expect anything different but its noticeable how its completly opposite to basicly every other YouTube Content where you will always find some "haters"
Keep up that great work Professor! :)
and also heads up to all my fellow soon-to-be-great-investors 🥳🥳

[tiananicholetallant]

I have zero accounting/ finance background and have recently become interested in the stock market and investing. I was hitting a wall with some of the value investing content I was learning because I feel like the investment landscape is so different with now than it was 20-30 years ago. I am insanely grateful for this course! I have no idea what you're saying 1/2 the time, but I hope that after doing some further reading and research that ill be able to pick up more information when i come back in the future!

[larryhailu]

AWESOME explanation, thank you Professor! Just bought your book on Kindle.

[shujiezhang]

Excellent stuff. Thank you, professor.

[yashgoenka]

Finance income is added when computing CFO and Reduced in CFI to show a fair picture, as CFO will include interest expense which is actually a finance expense

[m.johnmorency]

Are we suppose to add the current portion of operating leases in current liabilities when we're calculating current liabilities in the working capital formula ?

[chandrashekharpatil]

Hello Professor, this video lecture has been a great help to me to understand cash flow statement. I am grateful for that. However, I would appreciate if you solve my little confusion. You calculated Cash flow from investment by adding investment in operating and non operating assets at 5:03, but, only considered investment in operating cash assets for Cash flow from operation and not included investment non operating asset at 11:36. What should be the correct case?

[StreetStyleSoccer]

Hello Professor. How is an increase in non working capital a decrease in operating cashflow and not a negative part of cashlow from investment activities?

[godwithin]

why is free cash flow to equity potential dividends if it includes cash that is generated from financing?

[LearnGuitarTutorials]

Why is interest expense on the cash flow statement included in operating cash flows rather than financing cash flows if interest expense is the cost of borrowing money (such as from debt) which is a financing activity?

[SwarnavaIO]

NET INCOME IS THE PROFIT AFTER TAX IN THE INCOME STATEMENT, BUT IN IND-AS ACCOUNTING FORMAT (financial statements of indian companies) THE CASH FLOW STATEMENT BEGINS WITH PROFIT BEFORE TAX. 12:34

[SK-ckqu]

The professor Send there are only two ways to raise funds for a business debt or equity. How about donations? Is it legally forbidden for a business to raise cash via donations.