Cash flow is the net amount of cash and cash equivalents moving in and out of a business during a specific period. It represents the liquidity and financial health of an entity, including operational, investing, and financing activities.
Positive cash flow indicates more money entering than leaving, enhancing a company’s ability to cover expenses, invest, and repay debts.
Negative cash flow may signal financial challenges. Analyzing cash flow is crucial for financial planning and decision-making, helping businesses sustain operations and achieve long-term stability.
