What is cashflow and its importance.

Question

Accepted Answer

Cashflow is the net amount of cash and cash-equivalents moving into and out of a business.

Cashflow is crucial for assessing a company's financial health and sustainability.
It helps in determining the ability of a company to pay its bills, invest in growth, and return money to shareholders.
Positive cashflow indicates that a company is generating more cash than it is spending, while negative cashflow may signal financial trouble.
Examples of cashflow include operating cashflow, investing cashflow, and financing cashflow.
Operating cashflow measures the cash generated from a company's core business activities.
Investing cashflow reflects the cash used for investments in assets like equipment or property.
Financing cashflow shows the cash flow from financing activities such as issuing stock or taking out loans.

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