MYCAMPUSFINANCE BREAKING NEWS !!

Unveiling the Cash Flow Statement: An Underappreciated Financial Lens

I’m excited to announce the release of my new book, “The Cash Flow Statement: 88 Essentials to Understand.” In the world of finance, the cash flow statement often plays second fiddle to the balance sheet and income statement—even though it offers a uniquely insightful perspective. Unlike these documents that are directly generated from the double-entry accounting system, the cash flow statement is recalculated from cash entries (direct method) or derived from balance sheet variations (indirect method). This process makes it less a forecasting tool and more an ex-post analysis of a company’s financial journey.

In my book, I not only demystify the intricacies of each component but also take a systemic approach to its temporality. The statement uniquely captures the interplay between present performance, future growth, and the impact of past financial decisions—a dynamic that I believe is as simple as Einstein’s famous equation,E = mc².

In fact, one of the key insights can be expressed as:

Free Cash Flow = Capital Employed × (ROCE – GROCE)

Beyond this title, you can also explore its two sibling works—“The Profit and Loss Statement: 88 Essentials to Understand” and “The Balance Sheet: 88 Essentials to Understand”—all available on Amazon.