What is the main focus of a cash flow statement?

The main focus of a cash flow statement is to assess an organization's liquidity. This financial statement provides a detailed analysis of the cash inflows and outflows over a specific period, enabling stakeholders to understand how effectively a company manages its cash.

By tracking cash flows from operating, investing, and financing activities, the statement reveals how well a business can meet its short-term obligations and fund its operations. This liquidity assessment is crucial, as it determines whether the organization has sufficient cash on hand to cover its immediate expenses, make investments, or respond to unforeseen challenges.

In contrast, analyzing profitability pertains to income statements, calculating overall market share involves examining competitive positioning, and evaluating customer satisfaction relates to qualitative measures not typically represented in a cash flow statement. Hence, the focus on liquidity aligns directly with the primary purpose of cash flow reporting.