Learn the stock market › Read an earnings report › Lesson 4 of 7
The cash flow statement
From the cash at the start to the cash at the end
Why profit and cash differ is covered in the lesson on cash flow. Here we read the table itself. It starts with the cash at the beginning of the period, adds or subtracts three flows, and ends with the cash at the end. The table shows Alphabet's quarter that ended in September 2026.
| $ million | Sep 2026 |
|---|---|
| Cash at the start of the quarter | 55,911 |
| + Operating activities | 42,290 |
| of which working capital | −17,428 |
| + Investing activities | −71,349 |
| of which capital spending | −51,355 |
| + Financing activities | 29,437 |
| of which dividends | −2,936 |
| + Exchange rates and other | 45 |
| = Cash at the end of the quarter | 56,334 |
Cash went from $55.9 billion to $56.3 billion.
The three parts
Operating activities are the money the ordinary business produced: payments from customers minus wages, suppliers and taxes. The change in working capital is money tied up in, or released from, inventory and unpaid bills.
Investing activities are what the company paid for things it will use for years, such as data centers, factories and equipment, and for businesses it bought. They are usually negative. Alphabet spent $51.4 billion on capital spending in the quarter.
Financing activities are the money between the company and those who finance it: new debt and repayments, dividends and share buybacks.
In the quarter Alphabet paid $2.9 billion in dividends.
Financing brought in more money than it took out this quarter: the company took in more from new debt or new shares than it repaid and paid out.
The line for exchange rates and other is there because cash held in other currencies changes value when it is translated into dollars.
Free cash flow
What is left once capital spending is paid is usually called free cash flow. For Alphabet it was −$9.1 billion in the quarter. That is the money that can go to dividends, buybacks or paying down debt without new borrowing. Companies calculate it in slightly different ways, so check how the report defines it.
A single quarter says little. Cash flow swings between quarters, for instance when inventory is built up or when taxes are paid. Compare with the same quarter a year earlier, or add up the last four quarters.
Test yourself
A company pays $5 billion in dividends. Where does it show in the cash flow statement?
Alphabet's latest figures are on its stock page.