Examples of Cash Flow Statement Comparison: 3 Practical Examples for Real Decisions

If you want examples of cash flow statement comparison: 3 practical examples, start with a classic contrast: a fast-growing SaaS company vs. a boring-but-profitable industrial manufacturer. Same revenue level, very different cash stories.

Let’s call them:

• CloudCo – subscription software, growing 35% per year
• MachCo – industrial equipment maker, growing 4% per year

Both report \(500 million in revenue in 2024. On the income statement, they look similar: CloudCo posts net income of \)20 million; MachCo posts $25 million. But the cash flow statements tell a sharper story.

Operating cash flow comparison

CloudCo’s 2024 cash flow from operating activities (CFO): –$10 million.

• Net income: +$20m
• Depreciation and amortization: +$18m
• Stock-based compensation: +$25m
• Increase in accounts receivable: –$40m
• Increase in deferred revenue: +$12m
• Increase in other working capital (mainly prepaid costs): –$45m

MachCo’s 2024 CFO: +$60 million.

• Net income: +$25m
• Depreciation: +$30m
• Modest working capital swings (inventory, receivables, payables): net +$5m

Put side by side, this first example of cash flow statement comparison highlights a pattern you’ll see constantly in 2024–2025:

• CloudCo is earnings-positive but cash-negative from operations. Growth is soaking up cash via receivables and prepaid costs.
• MachCo is earnings-positive and cash-positive, with CFO more than double net income thanks to non-cash charges and disciplined working capital.

In an environment of higher interest rates (see the Federal Reserve’s rate path and commentary at federalreserve.gov), investors are far less patient with companies like CloudCo that burn operating cash to chase growth.

Investing and financing: who’s funding the story?

CloudCo’s 2024 cash flow from investing activities (CFI): –$55 million.

• Capitalized software development: –$25m
• Data center and office build-outs: –$30m

MachCo’s 2024 CFI: –$20 million.

• Maintenance capex: –$15m
• Small capacity expansion: –$5m

CloudCo’s 2024 cash flow from financing activities (CFF): +$70 million.

• Equity issuance: +$50m
• Convertible debt issuance: +$30m
• Lease and debt repayments: –$10m

MachCo’s 2024 CFF: –$35 million.

• Term debt repayment: –$20m
• Dividends: –$10m
• Share repurchases: –$5m

Total change in cash:

• CloudCo: –\(10m (CFO) – \)55m (CFI) + \(70m (CFF) = +\)5m
• MachCo: +\(60m (CFO) – \)20m (CFI) – \(35m (CFF) = +\)5m

They both end the year with +$5m in net cash. But this example of cash flow statement comparison makes the funding difference obvious:

• CloudCo’s cash increase is financed by investors and lenders.
• MachCo’s cash increase is generated internally and partly returned to shareholders.

If you’re an investor or lender in 2025, you’re asking: can CloudCo keep raising money at reasonable terms if credit tightens further? MachCo, on the other hand, looks like a self-funding machine.

Examples of cash flow statement comparison: retailer with profit vs. retailer with cash crunch

For the second of our examples of cash flow statement comparison: 3 practical examples, look at two mid-sized retailers:

• StyleMart – fashion retailer, aggressive store openings
• ValueBox – discount retailer, slower expansion, tighter inventory control

Both report \(800 million in 2024 revenue and \)30 million in net income. On the surface, they look equally profitable. The cash flow statements say otherwise.

Operating cash flows: the inventory trap

StyleMart’s 2024 CFO: –$5 million.

• Net income: +$30m
• Depreciation: +$12m
• Inventory increase: –$40m
• Accounts receivable increase (wholesale channel): –$10m
• Accounts payable increase: +$3m

ValueBox’s 2024 CFO: +$65 million.

• Net income: +$30m
• Depreciation: +$10m
• Inventory decrease: +$15m (better turnover, fewer markdowns)
• Accounts payable increase: +$10m (negotiated better terms)

This example of cash flow statement comparison shows a common 2024–2025 theme in retail: inventory management is destiny. StyleMart is tying up cash in unsold inventory, partly due to misjudged post-pandemic fashion trends. ValueBox is freeing up cash by keeping stock lean and negotiating longer payment terms.

You can see the same patterns in public company 10-K filings on the SEC’s EDGAR system (sec.gov/edgar), where profitable retailers sometimes show negative CFO because inventory and receivables balloon.

Investing and financing: how the cash gap is plugged

StyleMart’s 2024 CFI: –$25 million.

• New store build-outs: –$20m
• IT systems and e-commerce upgrades: –$5m

ValueBox’s 2024 CFI: –$10 million.

• Mostly maintenance capex: –$10m

StyleMart’s 2024 CFF: +$35 million.

• New term loan: +$25m
• Revolving credit draw: +$15m
• Debt repayments: –$5m

ValueBox’s 2024 CFF: –$50 million.

• Debt repayments: –$20m
• Dividends: –$15m
• Share buybacks: –$15m

Net change in cash:

• StyleMart: –\(5m (CFO) – \)25m (CFI) + \(35m (CFF) = +\)5m
• ValueBox: +\(65m (CFO) – \)10m (CFI) – \(50m (CFF) = +\)5m

Again, both end with the same cash increase, but the examples include very different risk profiles:

• StyleMart is borrowing to cover negative operating cash and expansion. Rising interest rates hit this model hard.
• ValueBox is paying down debt and returning cash to shareholders, funded by strong CFO.

This second example of cash flow statement comparison is exactly what lenders look at when renewing credit facilities. A bank under tighter regulatory scrutiny (see general guidance on credit risk from the Federal Reserve and FDIC at fdic.gov) will be far more comfortable with ValueBox than StyleMart.

Third practical example: turnaround case vs. status quo cash burner

The third of our examples of cash flow statement comparison: 3 practical examples focuses on change over time rather than two different companies.

Consider LogiTrans, a logistics company that struggled in 2022–2023 and started a turnaround plan in early 2024.

2023: negative cash spiral

LogiTrans 2023 cash flow profile:

• CFO: –$15 million
• CFI: –$40 million (fleet expansion, new warehouse)
• CFF: +$60 million (new debt and a small equity raise)
• Net change in cash: +$5 million

Operating cash flow details:

• Net loss: –$10m
• Depreciation: +$20m
• Increase in receivables: –$25m
• Increase in fuel and maintenance payables: –$5m (suppliers tightening terms)

This is the classic cash burner profile: negative CFO, heavy capex, financed by lenders and shareholders.

2024: same revenue, different cash reality

In 2024, management focuses on:

• Pricing discipline and contract renegotiation
• Stricter credit control to reduce receivables days
• Capex freeze on new fleet purchases

2024 cash flow profile:

• CFO: +$35 million
• CFI: –$10 million (only maintenance capex)
• CFF: –$20 million (debt repayment)
• Net change in cash: +$5 million

Operating cash flow details:

• Net income: +$5m (swing from loss to modest profit)
• Depreciation: +$22m
• Decrease in receivables: +$20m
• Increase in payables: +$3m
• Other working capital: –$15m

Now compare 2023 vs. 2024. This is one of the best examples of cash flow statement comparison for internal management:

• CFO moves from –\(15m to +\)35m, a $50m swing without massive revenue growth.
• CFI shrinks from –\(40m to –\)10m, reflecting disciplined capex.
• CFF flips from +\(60m to –\)20m, meaning the company is now repaying debt instead of raising it.

This example of year-over-year cash flow statement comparison shows a genuine turnaround. The same net change in cash (+$5m) tells a completely different story once you see the components.

Six more quick-hit real examples of cash flow statement comparison

Beyond the 3 practical examples, it helps to see more patterns. Here are additional real-world style examples of how comparing cash flow statements changes decisions:

• Dividend sustainability check: Two utilities both yield 4%. One has CFO consistently less than dividends plus capex, plugging the gap with new debt in the CFF section. The other has CFO comfortably covering both capex and dividends with room to spare. Comparing their cash flow statements quickly tells you which dividend looks safer over the next rate cycle.

• Share buyback reality check: A consumer tech company boasts a massive buyback program. The cash flow statement comparison vs. peers shows that its buybacks are funded mostly by new debt (CFF) while CFO is flat. Peers fund buybacks from excess CFO after capex. Same headline story, very different cash economics.

• Startup runway analysis: Two early-stage biotech firms each hold \(150m in cash. One has annual negative CFO of \)75m and modest CFI; the other burns $40m in CFO but spends heavily on lab build-outs (CFI). Comparing their cash flow statements gives investors a clearer view of runway and when the next equity raise is likely. For context on how this shows up in real biotech filings, see academic and market analyses from sources like Harvard’s health policy research.

• M&A integration check: After an acquisition, management promises “synergies.” Comparing pre- and post-deal cash flow statements (especially CFO margin and CFI for integration costs) across two years shows whether those synergies are real cash or just accounting talk.

• Interest rate shock impact: In a rising-rate environment, comparing cash flow statements across 2021–2024 for a leveraged company shows interest payments creeping up in CFF and, in some cases, CFO declining as higher interest expense eats into earnings. The pattern is visible in filings across sectors as rates moved up sharply, as discussed in monetary policy summaries at federalreserve.gov.

• ESG and sustainability spending: Two manufacturers both talk about sustainability investments. One shows clear CFI outflows for energy-efficient equipment and CFO benefits later via lower utility costs and tax credits. The other only mentions ESG in the MD&A section with no visible pattern in the cash flow statement. Comparing those statements tells you who’s actually writing checks vs. just writing press releases.

These are the kind of real examples analysts use every day. They’re not theoretical; they’re grounded in how cash actually moves.

How to use these examples of cash flow statement comparison in 2024–2025

All three main cases—and the extra examples of cash flow statement comparison—feed into a few practical habits:

• Always reconcile net income to CFO: If earnings look fine but CFO is consistently weak or negative, you have a quality-of-earnings issue.
• Track the source of cash changes: Two companies can show the same net change in cash, but one is funding it from operations and the other from debt or equity. The cash flow statement comparison makes that instantly visible.
• Watch working capital in a tighter credit world: In 2024–2025, suppliers and lenders are less forgiving. Increases in receivables and inventory show up fast in CFO and separate the ValueBoxes from the StyleMarts.
• Look at multi-year trends, not single-year snapshots: The LogiTrans turnaround example of year-over-year cash flow comparison is typical—real improvement shows up over several periods, not in one quarter.

If you want to practice, download a few 10-Ks from the SEC’s EDGAR database (sec.gov/edgar) and pick two companies in the same industry. Line up their cash flow statements for the last three years. Then ask:

• Who is actually generating cash from operations?
• Who is funding growth through CFI vs. CFF?
• Whose pattern got better or worse as rates rose after 2022?

You’ll quickly see why working through examples of cash flow statement comparison: 3 practical examples (and beyond) is far more useful than memorizing definitions.

FAQ: examples of cash flow statement comparison

Q1. Why are examples of cash flow statement comparison more useful than just learning definitions?
Because the value is in pattern recognition. Real examples show how profit can exist without cash, how growth can be funded, and how risk builds up over time. Comparing two companies—or two years for the same company—forces you to interpret the story behind the numbers instead of just reciting what CFO, CFI, and CFF mean.

Q2. What is a good example of a red flag in a cash flow statement comparison?
A classic red flag is a company with growing net income but declining or negative CFO for several years, while CFF shows heavy new borrowing or equity issuance. When you compare that to a peer with similar earnings but strong CFO and lower financing inflows, the risk gap becomes obvious.

Q3. How many years should I use when doing examples of cash flow statement comparison?
For most decisions, three to five years is reasonable. That window shows how the business handled different conditions—pandemic, supply chain shocks, interest rate hikes—and whether cash generation is improving or deteriorating. For early-stage startups, even two years of comparison can be informative because the burn rate and funding pattern change quickly.

Q4. Are there good public sources where I can find real examples of cash flow statement comparison?
Yes. The SEC’s EDGAR database (sec.gov/edgar) is the main source for U.S. public companies. Many business schools, including Harvard, publish case studies that walk through cash flow analysis using real companies (harvard.edu). You can also find investor presentations where management explains shifts in CFO, CFI, and CFF, effectively giving you narrative context for your own comparisons.

Q5. How do higher interest rates in 2024–2025 show up when I compare cash flow statements?
You’ll typically see higher interest expense flowing through the income statement and into CFO (lower net income, all else equal), and sometimes higher cash outflows in CFF if companies refinance at less favorable rates. Comparing 2021–2022 cash flows to 2023–2024 gives a clear view of which companies adapted—by paying down debt, improving working capital, or raising prices—and which ones saw their cash generation squeezed.