Cash flows

Definition

Cash flows represent the movement of money into and out of a business, indicating its financial health by tracking income and expenditures over a period. They are essential for operational sustainability, investment activities, and financing operations.

Related terms

Liquidity: The ability of a company to meet its short-term financial obligations with its available assets.

Capital Budgeting: The process that a business uses to evaluate potential major projects or investments by analyzing their future cash flows and profitability.

Financial Statements: Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and statement of cash flows