No items found.
FREE DOWNLOAD: 16 Must-Track Financial Metrics for Subcontractors
Download Now →
By clicking “Accept All Cookies," you agree to let Siteline store cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
Construction Glossary >
Cash Flows Statement
Construction glossary

What is a Cash Flows Statement?

A Cash Flows Statement, specifically in the construction industry, serves as a financial document that provides a detailed summary of a company's cash inflows and outflows over a certain period. This statement plays a crucial role in understanding the liquidity and solvency of a construction company as it helps track where the funds originate and where they get spent. It is segmented into three elements: operating activities (day-to-day operations of the construction business), investing activities (acquisition or disposal of assets), and financing activities (transactions with owners or lenders). It provides invaluable information for contractors, investors, and stakeholders, enabling them to scrutinize the financial health, operational efficiency, and investment potential of the construction company.