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The Cash Flow Statement

What it is

A view of how cash actually moves through a business, broken into three buckets:

  • Operating — cash generated from running the business
  • Investing — cash spent on (or received from) capex and acquisitions
  • Financing — cash from debt, equity, or returned to shareholders

Why "Free Cash Flow" matters

Free Cash Flow (FCF) = Operating cash flow − capex. It's the cash a business produces after maintaining itself. FCF is what funds dividends, buybacks, growth, and debt repayment. The DCF model is built on it for a reason.

How Cowry uses it

The DCF engine takes a base FCF figure as its starting point. The cleaner and more consistent that FCF, the more reliable the valuation.

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