Cash Flow

What is Cash Flow? 

Cash flow refers to the net amount of cash being transferred into and out of a business.

Explanation: 

Positive cash flow indicates that a company's liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders, pay expenses, and provide a buffer against future financial challenges.

Practical Example of Cash Flow: 

A company's quarterly cash flow statement shows $1 million in operating cash flow, indicating healthy liquidity and financial stability.

‍