The net amount of cash and cash equivalents moving into and out of a business during a specific period.
Cash flow is categorized into three types: Operating (day-to-day business activities), Investing (buying/selling assets), and Financing (borrowing, repaying debt, issuing equity). Positive cash flow means more money is coming in than going out. A company can be profitable on paper but still fail if it runs out of cash — this is why cash flow management is often considered more important than profit.
A business collects ₹10,00,000 from customers but pays ₹7,50,000 in expenses, rent, and salaries. Its net cash flow is ₹2,50,000 positive.
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Yes. If a company recognizes revenue on accrual basis but hasn't collected the cash, or if it has heavy capital expenditure, it can be profitable on paper but cash-negative.
Operating cash flow (core business), Investing cash flow (asset purchases/sales), and Financing cash flow (debt and equity transactions).
The difference between a company's current assets and current liabilities, representing the short-term liquidity available for day-to-day operations.
A financial statement that summarizes a company's revenues, costs, and expenses over a specific period to show net profit or loss.
Money owed to a business by its customers for goods or services delivered but not yet paid for.
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