Cash Flow Statement Analysis is a method for evaluating the financial performance of a business. It does this by looking at how cash moves into and out of the business, in the form of inflows from revenues and outflows from expenses. By examining these inflow and outflow amounts over a given period – typically a year or quarter – businesses can see how their finances evolve. This analysis can show areas of strength and weakness, such as whether or not expenses are exceeding revenue, or if cash is too quickly leaving the business. With this insight, businesses can make informed decisions about where to allocate resources and how to improve their overall financial health.