A Study on Interrelation Impact of Balance Sheet, Income Statement and Cashflow Statement

The study focused on interdependent relationship among the three fundamental financial statements that reflect a company’s overall financial performance and position. The research is based on a five-year financial analysis (2021–2025) of JSW Steel focusing on key components such as Equity Share Capital, Reserves and Surplus, Long term borrowings, non-current liabilities, Trade Payable, Current Liabilities, Tangible Assets, Inventories, Trade Receivables, Cash and Cash Equivalents, Operating Revenue, Total Expenses, Profit/loss After tax and Before Extraordinary items. This study emphasizes that the balance sheet, income statement, and cash flow statement are intrinsically linked, with changes in one statement producing measurable effects on the others. Understanding these interrelations is essential for financial analysis, managerial decision-making, and assessing a company’s profitability, solvency, and operational efficiency.