10. Cash Flow from Operating Activities

Measures the cash generated or used by a company’s core operational activities. This indicator reflects the company’s ability to generate sufficient cash to sustain and grow its business operations without relying on external financing.

Example: A company reports $30,000 in net income, but adjusts for $5,000 in depreciation and $3,000 in changes in working capital. The cash flow from operating activities is $30,000 + $5,000 + $3,000 = $38,000.