There are 3 important financial statements you should look at before investing in a company: balance statement, income statement, and cash flow statement. http://bit.ly/1OyEoVM

A cash flow statement is used to determine if a company we’re researching has enough money available to function. In this video, I discuss the red flags you should look out for when reviewing a cash flow statement and how to determine if there is enough cash flow growth to make it a worthwhile investment.

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36 COMMENTS

  1. Hey Phil you gotta look at how Mike Maloney just a suggestion. can u insert some kind of animation or something. love your videos. It’ll help more if you’ve got some illustrations

  2. How is it possible that "levered cash flow" is higher than "operating cash flow"? I thought levered cash flow just adds interest and loan repayments and so levered cash flow should be more negative.

  3. So according to this video, Amazon and others that are continually reinvesting and raising capital are red flag companies? I think that you need to make a video talking about tech startups and their reinvestment & capital raising cycles because what you're saying only holds true for mature companies, or new non-disruptive companies in established industries.

  4. Thank you Mr.Phil Town. for let me know that operating cashflow tends to bigger than net income and if not thats red flag.I checked the case the net income was bigger than cashflow for 3 years in a row.That company receivables has been huge but never get cash out of receivables. And also thank you for that cashflow is minus thats serious red flog. So far, I never stressed cash flow especially operating cashflow.Thank you for big help and if you upload more videos like short term loans increasing or things like that, that will be fantastic. FCF was also very helpful. Big thank you!^^

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