Appendix VI: Cash Flow Statement

Introduction to Fundamental Stock Research

These are the exercises to go along with Chapter VI, on the cash flow statement:

  1. Find the cash flow statement for the company you are interested in.
  2. Is the company cash positive overall? Which activities are cash flow positive (add to cash flow), and which are cash flow negative (subtract from cash flow)?
  3. How has free cash flow (FCF) changed over time? Is it usually negative or positive? If FCF is negative but cash flow is positive, what does that tell you?
  4. Find the FCF as a % of sales metric and see how it has changed over time. Is cash growing more or less rapidly than sales? What does that tell you?
  5. Do the trends you see in the cash flow information let you know this is a strong, thriving company or do they tend to make you realize the company might be weaker than its earnings trends might indicate?

Here is where you can find all the information you need to complete the exercises.


Find a Company’s Cash Flow Statement

Once you have selected a stock, you will notice that it loads in the table and the Insight panel (on the right hand side of your SR screen). Navigate to the Statements tab and find the Cash Flow Statement among the accordion menus.

cash flow statement

Find a Company’s Income Statement

Also in the Statements tab, find the income statement among the accordion menus. EPS is called out below.

income statement eps

Tip: In the Statements tab, mousing over the graph icon will give you a very quick glance at the overall trend for the metric, as shown below.

income statement

Compare Cash Flow and EPS

Premium users can also compare sales or EPS to cash flow by opening the Detail tab of the Insight panel for tables of each, like these:

cash flow eps

Find Free Cash Flow as a Percent of Sales

Find this metric by using the “Add Column” button in the table. Simply start typing the metric and wait for it to populate a list of matching names. Add the metric to any view.

free cash flow metric

To look at how the value changes over time, expand the ticker row by clicking the small arrow to the left of the symbol.

free cash flow metric

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