Analysis of the statement of cash flows

In the complete set of financial statements, Statement of Cash Flows, is the single financial statement which was prepared on cash basis instead of accrual basis of accounting. Therefore, it provides unique financial information in the assessment of financial position and financial performance. This information is crucial in terms of going concern assumption of accounting and return expectations of the users who provide resources to the entity. Statement of Cash Flow, offers an alternative performance metrics to the accrual based metrics. Additionally, it measures ability to meet interest, principle and dividend payments which depends on cash generating ability. Therefore, analysis of the statement of cash flow is an integral part of the financial analysis. In the analysis of the combined statements of cash flows of BİST 100 firms, it was concluded that, BİST 100 generate cash flows from operating activities and the quality of earnings is high. The cash flow from operating activities is sufficient to pay "interest" "interest-principal" and "dividend" separately. Nevertheless, cash generating ability of BİST 100, is insufficient to meet all payments and make investments without recourse to external sources. Key Words: Statement of Cash Flows, Cash Flows From Operating Activities, Efficiency Ratios, Sufficiency Ratios