Cash Flow

by

Cash flow is the net amount of money moving in and out over a period. Positive cash flow means more comes in than goes out; negative cash flow drains reserves — and a profitable business can still fail from poor cash flow if money arrives later than bills come due.

Cash flow is typically split into operating (day-to-day), investing (assets) and financing (debt and equity) activities on a cash flow statement.

← Back to all glossary terms