The relationship between financial performance and cash flows in Iraqi economic units: (an applied study in the Baghdad Soft Drinks Company)

Abstract

The research aims to present and analyze the financial performance indicators in the research sample company and to find out the extent to which the financial performance indicators are consistent with the cash flow indicators. This is done by testing the selected research sample, that is, the relationship between the financial performance indicators based on the income statement, the financial position, and the cash flow statement indicators is determined. To achieve the research objectives, the research sample was chosen Baghdad Soft Drinks Company for a period of (3) years from 2018-2020. The researcher reached a set of conclusions, the most important of which are: The financial statements (financial position statement, income statement, and cash flow statement) are complementary lists, and it is impossible to rely on one list without the other because they all provide specific information. In light of the research conclusions, a number of recommendations were presented, the most important of which are: the need to know the reason for the weak financial performance in the companies sampled in the research to take the necessary measures to correct their performance, because increasing the weakness of their financial performance will affect the companies and lead to financial failure.