PURPOSE AND IMPORTANCE OF THE CASH FLOW STATEMENT
Keywords:
Cash flow statement, operating cash flow, investing activities, financing activities, working capitalAbstract
This study examines the purpose and importance of the cash flow statement as a key financial reporting tool, focusing on its role in assessing liquidity, financial stability, and decision-making. Using a descriptive and analytical approach, the research analyzes secondary data from the annual financial statements of UzAuto Motors for 2023 and 2024. The study evaluates cash flows from operating, investing, and financing activities and applies a comparative method to identify changes between the two years. The findings reveal that the company maintains strong operating cash flow, indicating stable core business performance, although a slight decline is observed in 2024. Changes in working capital significantly affect final operating cash flow, demonstrating the importance of managing receivables, inventories, and payables. Investing activities remain positive in both years, mainly driven by movements in bank deposits and capital expenditures, while financing activities show consistent negative cash flow due to dividend payments and debt repayments.
References
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https://uzautomotors.com/documents/uzautomotorsifrsreportfy2024-30-may.pdf
