When combined, these insights provide a comprehensive view of a company’s financial health and potential for future success. Horizontal analysis of the cash flow statement helps you see how cash is being managed year over year. These metrics reveal consistent growth and profitability, which are key insights for investors evaluating

The FIFO method assumes that the oldest inventory units are sold first, while the LIFO method assumes that the most recent inventory units are sold first. LIFO better matches current costs with revenue and provides a hedge against inflation. The FIFO vs. LIFO accounting decision matters because of the fact