Cash Flow

Cash flow refers to the net amount of cash and cash equivalents being transferred into and out of a business over a specified period. It is a vital indicator of a company's financial health, demonstrating its ability to generate cash to pay debts, fund operations, and invest in future growth. Positive cash flow means a company is bringing in more cash than it is spending, indicating financial stability and liquidity, while negative cash flow suggests the opposite and can signal potential financial distress if sustained.