# Cashflow Statement Overview

This article explains how the **Cashflow Statement** works in Model Reef.

You will learn:

* How the Cashflow Statement is generated from variables and timing.
* The structure of Operating, Investing and Financing cashflows.
* How the Cashflow Statement links to P\&L, Balance Sheet and the Cash Waterfall.

The Cashflow Statement is the main view of when cash actually moves.

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### How the Cashflow Statement is generated

The Cashflow Statement is generated automatically, not with user formulas.

For each period, Model Reef:

* Evaluates all variables.
* Applies occurrence rules to generate accruals.
* Applies delay and payment rules to determine when cash moves.
* Groups cash movements into Operating, Investing and Financing sections.

The engine ensures that:

* Every cash in or cash out is captured once.
* Net cashflow reconciles to the change in the cash balance on the Balance Sheet.
* Closing cash equals opening cash plus net cashflow.

You do not build a separate cashflow model. The timing engine and variable types create it for you.
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### Cashflow Statement structure

The standard Cashflow Statement layout in Model Reef is:

* **Operating cashflows**
  * Receipts from customers.
  * Payments to suppliers and staff.
  * Interest paid.
  * Tax paid.
* **Investing cashflows**
  * Capex and other asset purchases.
* **Financing cashflows**
  * Debt drawdowns and repayments.
  * Equity injections.
  * Dividends paid.
* **Net cashflow**
  * Sum of Operating, Investing and Financing cashflows.
* **Opening and closing cash**
  * Opening cash from prior period Balance Sheet.
  * Closing cash equals opening cash plus net cashflow.

This is a direct method Cashflow Statement.
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### Link to the Balance Sheet

The Cashflow Statement and Balance Sheet are tightly linked.

For each period:

* Net cashflow changes the cash balance.
* Working capital balances such as Accounts Receivable and Accounts Payable reconcile differences between accrual and cash timing.
* Loan and equity balances move in step with debt drawdowns, repayments, equity injections and dividends.

The timing engine guarantees that the Balance Sheet always balances and that cash movements match the Cashflow Statement net cashflow.
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### Link to P\&L and Cash Waterfall

The Cashflow Statement uses cash timing, while the P\&L uses accrual timing.

* The **P\&L** shows when revenue and costs are earned or incurred.
* The **Cashflow Statement** shows when cash is collected or paid.
* The **Cash Waterfall** uses P\&L down to EBITDA, then switches to cash based working capital, capex and financing flows.

You can think of the Cash Waterfall as a structured view that bridges P\&L performance and Cashflow Statement movements.
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### Viewing and filtering cashflows

You can view cashflows:

* By period: weekly, monthly, quarterly or annual views depending on model periodicity.
* By branch: for specific entities, divisions or projects.
* By scenario: each model or scenario has its own cashflow pattern.
* In common size view, for example as a percentage of revenue.

Filters and views do not change the underlying calculations. They only change how the data is presented.
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***

## Related articles

* [Seasonal Revenue Planning](/use-cases/hospitality-and-events-functions-events-venues/seasonal-revenue-planning.md)
* [Build a Multi Scenario Valuation Pack](/how-tos/valuation/build-a-multi-scenario-valuation-pack.md)
* [Financing Cashflow](/help/financial-outputs-and-valuation/financing-cashflow.md)
* [Drivers Syntax](/syntax/drivers-syntax.md)


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