Chapter 21: Cash Flow Statement Quality

In this section

• Operating vs. Investing vs. Financing Classifications
  A deep dive into how cash flows are categorized under both IFRS and US GAAP, why it matters, and how analysts can spot classification tricks that inflate operating cash flows.
• Cash Flow Manipulations: Timing and Disclosure
  Explore how companies might manipulate operating cash flows by adjusting payment timings, accelerating collections, and altering disclosure practices, and learn how to detect and analyze such shifts to maintain high-quality financial analysis.
• Reconciling Net Income to CFO: Signals to Watch
  Explore the indirect method of operating cash flows, uncover red flags, and learn how to reconcile net income to CFO in this advanced yet friendly CFA® Level II guide.
• Item Set: Spotting Abnormal Cash Flow Trends
  Discover how to identify suspicious shifts in operating cash flows and differentiate genuine operational results from manipulative approaches through ratio analysis, footnotes, and trend interpretations.