The statement of cash flows, also known as the cash flow statement, is a financial report used to evaluate the performance of a company. It provides information on how cash flows into and out of a business, which helps investors, analysts, managers, and other stakeholders to assess the liquidity of a company. The statement of cash flows is divided into three sections: Operating activities, Investing activities, and Financing activities. Each section provides information and insight on how cash is generated and used within each of the areas. By presenting this information, investors and analysts can gain a better understanding of how a company creates and uses its cash, and make well-informed decisions regarding its financial future.