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Technical Note

The Statement of Cash Flows: Direct and Indirect Method

By Peñalva, Fernando / Badia, Marc

This note explains how to prepare, read and interpret the Cash Flow Statement, both using the direct and the indirect methods. The Cash Flow Statement is a financial statement that summarizes how the firm has generated and consumed cash over a period of time. The note illustrates the content and structure of the Cash Flow Statement and how it relates to the Balance Sheet and the Income Statement.

Collection: IESE (España)

Ref: CN-233-E

Format: PDF

Number of pages: 11

Publication Date: Mar 11, 2016

Language: English, Spanish

Review date: Sep 12, 2023

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Learning Objective

The note illustrates the content and structure of the Cash Flow Statement and how it relates to the Balance Sheet and the Income Statement.

The Statement of Cash Flows: Direct and Indirect Method

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The Statement of Cash Flows: Direct and Indirect Method

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