How to: Cash Flow (output)
In X-ASTRiS the Cash Flow statement has no drivers — it’s a calculated output that reconciles changes in cash based on your P&L and Balance Sheet assumptions. Use it to understand why cash goes up or down each year.
What you’re looking at
The cash flow statement is split into three parts:
- – Operating cash flow (cash generated by the business)
- – Investing cash flow (investments in fixed assets)
- – Financing cash flow (equity/debt movements and related cash items)
The result is the change in cash (increase or decrease of bank balance). With an end-of-year convention, this determines your year-end cash position.
1) Operating cash flow
Operating cash flow starts from profit and adjusts to reflect actual cash movements. The basic logic is:
- • EBIT minus tax
- • Add back depreciation (non-cash expense)
- • Change in working capital (AR / inventory / AP and related items)
Profit is not cash. A common example: you generate revenue, but customers haven’t paid the invoices yet. That increases accounts receivable, which reduces cash even though the P&L shows revenue.
This is why improving DSO/DIO/DPO can significantly increase runway: it changes how quickly profit turns into cash.
2) Investing cash flow
Investing cash flow is the cash impact of investments in fixed assets. In X-ASTRiS this comes directly from your Balance Sheet input:
The investing cash flow is primarily the Investments line you enter under fixed assets. This captures capex and reduces cash in the year you invest.
3) Financing cash flow
Financing cash flow captures how the business is funded and what is paid out to shareholders and lenders.
- • Dividends and capital injections
- • Changes in short-term debt and long-term debt
- • Financing costs such as interest expense (derived from debt balances and interest rate)
Change in cash (and Free Cash Flow)
The sum of operating, investing and financing cash flow equals the change in cash for the year. With an end-of-year convention, this change determines your year-end cash balance.
A commonly used metric is Free Cash Flow, which is:
Operating cash flow + Investing cash flow
This is the cash generated after investments and is often used in company valuation.
If the cash flow looks off, it usually means one of the drivers is inconsistent (P&L, fixed assets, working capital, or financing). Once it reconciles, you can confidently use scenario analysis and dashboards.