What is cash flow?

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1 Answer 460
Thomas Parker

Answered 7 months ago

Cash flow is how companies afford growth, pay dividends, and manage their debt. At its core, cash flow refers to a company’s money flowing in and out. If it has positive cash flow, this usually indicates the company has money left over after receiving revenue and paying expenses. In contrast, negative cash flow usually indicates that the company is losing money, as it isn’t generating enough cash receipts to cover its expenses. 

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