I know how to analyze the income statement and balance sheet because there are ratios for that. For example, for the balance sheet I can use the current ratio, quick ratio, I can use the cash and cash equivalents to figure out how long a company's cash is going to last. Its the same thing with the income statement, I can take a quick look and see if its net income is negative or not. i use it to see how fast revenue and net earning grew.
When looking at the cash flow statement what are you guys looking at? Are you guys looking at whether inventories decreased or increased from year over year? If so what kind of info does that give you? Is it a good or bad thing if inventories increased or decreased? Are you guys looking at whether a company sold off any assets? If so how do you find that? How do you analyze the cash flow statement to look for any red flags?
Also how do you know if a company is using debt to generate a profit?
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