DeutschWhat 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.
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