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The total amount of money being transferred into and out of a business, especially as affecting liquidity.
Positive cash flow indicates that a company's liquid assets are increasing.
When more money enters a business than leaves, it has positive cash flow.
Investors analyze cash flow statements to assess a company's financial health.
Financial reports showing money movement help determine if a company is stable.
Cash flow is distinct from profit; a company can be profitable but still have negative cash flow if payments are delayed.
The movement of money into and out of a personal budget or account.
After paying rent and groceries, her monthly cash flow was tight.
Her income barely covered essential expenses after fixed costs.
Often used in personal finance to describe spending and saving patterns.
Cash flow tracks actual money movement, while profit includes non-cash items like depreciation. A profitable company can still fail if it has poor cash flow.
Track both incoming and outgoing funds to avoid liquidity shortages. Use cash flow statements to predict future financial needs.
Compound of 'cash' (from French 'caisse', meaning 'money box') and 'flow' (Old English 'flōwan', meaning 'to move freely'). First recorded in financial contexts in the early 20th century.
Cash flow is a key indicator of financial health. Businesses monitor it to ensure they can cover expenses, while individuals track it to manage budgets. The term is often abbreviated as 'CF' in financial documents.