Guys, A cash flow statement is about cash flow – out flow/in...

Guys, A cash flow statement is about cash flow – out flow/in flow during the quarter. It is not a profit and loss statement. The reason ASX requires this quarterly 4C cash flow statement from the listed entities is to ensure these companies don’t run out of cash and putting investors into a risky situation. If a company is in cash flow positive situation, it means that it generate more cash and can continue without having to rely on more funding on its business operation. If a company is on an ongoing cash flow negative situation often referred as “burning cash” – it means that a company should either have a lots of cash at bank or having capacity from lenders such as banks to provide the funding support.