{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-flow-statement","api_url":"https://dealroom.so/api/public/glossary/cash-flow-statement","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"cash-flow-statement","term":"Cash flow statement","group":"Reading the business","definition":"A financial report showing how much cash a business generates and uses over a period, broken down by operating, investing, and financing activities. Buyers care because it shows the true liquidity of the business, beyond just profit.","what_it_means":"The cash flow statement is crucial because a profitable business can still have cash problems. It reveals how cash moves in and out, helping you identify if the business generates enough cash from operations to fund itself, pay debts, and provide owner compensation. Always review this alongside the P&L and Balance Sheet.","url":"https://dealroom.so/glossary/cash-flow-statement","official_sources":[],"related":[{"slug":"p-l","term":"P&L","url":"https://dealroom.so/glossary/p-l"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"}],"related_questions":[{"question":"Can future cash flow or profits from the acquired business count as equity injection?","url":"https://dealroom.so/for-lenders/questions/can-future-cash-flow-or-profits-from-the-acquired-business-count-as-equity-injection"},{"question":"How can an SBA 7(a) loan help with ongoing cash flow for my business?","url":"https://dealroom.so/sba-loans/basics/how-can-an-sba-7-a-loan-help-with-ongoing-cash-flow-for-my-business"},{"question":"What is the primary factor a lender considers when evaluating the cash flow from an acquired business?","url":"https://dealroom.so/sba-7a/questions/what-is-the-primary-factor-a-lender-considers-when-evaluating-the-cash-flow-from-an-acquir"},{"question":"Are there any restrictions on the use of cash flow projections for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/are-there-any-restrictions-on-the-use-of-cash-flow-projections-for-an-sba-7-a-acquisition-"},{"question":"Can I use an SBA 7(a) loan for my business's daily operating expenses or cash flow?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-my-business-s-daily-operating-expenses-or-cash-flow"},{"question":"How does a lender evaluate the reasonableness of a borrower's projections for future revenue and cash flow?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-evaluate-the-reasonableness-of-a-borrower-s-projections-for-future-reven"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Cash flow statement","url":"https://dealroom.so/glossary/cash-flow-statement","source_type":"DealRoom Data"}}