What is cash flow analysis

Question

Accepted Answer

Cash flow analysis is the process of evaluating the inflows and outflows of cash in a business to assess its financial health.

Cash flow analysis helps determine the ability of a business to generate cash and meet its financial obligations.
It involves examining the sources and uses of cash, including operating activities, investing activities, and financing activities.
Positive cash flow indicates that a business is generating more cash than it is spending, while negative cash flow suggests financial challenges.
Cash flow analysis helps lenders and investors assess the creditworthiness and profitability of a business.
For example, if a company has a positive cash flow from operations but negative cash flow from investing activities due to heavy capital expenditures, it may indicate growth potential but short-term liquidity concerns.

Accepted Answer

Cash flow analysis is the process of examining a business's cash inflows and outflows over a period of time to understand how well it manages its cash. It can help companies

What is cash flow analysis

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