Profit and cashflow are joined at the hip.You should be able to reconcile cashflow back to profit with movements in accounts receivable,accounts payable,inventory etc.You should use both in analysis.The pitfalls of just using profit is that of creative accounting.The pitfalls of just using cashflow is that cash is received early for advanced payments or looking at a negative cashflow when in actual fact the company is building up inventory for growth and future profit.
