One in three main thing that can be used to evaluate a company whether to invest or to learn is to analyse it's cash flow statement. It is equally important as reviewing the balance sheet and p&l statement. Everyone keenly focus on the numbers in these colomns before investing. Everyone should if he is to invest. But cash flow, they mostly give less importance. One reason is that they just need to know whether it is positive or negative. If it is positive, good. Negative, then need to analyze further more deeply. We can get a sense of the operational and financial activities from cash flow statements. And by combining our findings from here to over-all findings will lead to a good sense of this company.
The ability to go and look beyond numbers makes a huge difference in an organization. Mostly, the leaders do take notice of the revenue decrease and this push layoffs and payment cuts. They should be more focused on what is bothering the employees and what makes them suck at whatever they do. Threatening with salary cut and layoff will work in the short run. But the fuel ceases soon and the individual at the top need to figure out another intimidating stuffs that would make employees ass on fire. It doesn't work.
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