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what is cash flow

**Cash flow** is a financial measure that represents the amount of money that comes in and goes out of a company during a specific period. It is crucial for assessing the liquidity and financial health of a company. Here are some key aspects of cash flow:

1. **Operating Cash Flow**: Reflects the money generated by the core operations of the business, such as sales and services. It is an indicator of the company's ability to generate income from its main activities.

2. **Investing Cash Flow**: Includes cash inflows and outflows related to the purchase and sale of long-term assets, such as properties, equipment, and other investments. This flow shows how the company is investing in its future growth.

3. **Financing Cash Flow**: Represents cash inflows and outflows related to financing activities, such as issuing stocks, obtaining loans, and paying dividends. This flow indicates how the company finances its operations and growth.

4. **Free Cash Flow**: Is the cash available after covering operating and investment expenses. It is an important measure for investors, as it shows how much money the company has to pay dividends, reduce debt, or reinvest in the business.

Analyzing cash flow helps managers and investors understand a company's ability to generate cash, maintain its operations, and finance its growth. Would you like to know more about any specific aspect of cash flow?