fundamentals

cash flow

The net amount of cash moving in and out of a business or personal account over a period of time.

Example

"Despite being profitable on paper, the company struggled because of poor cash flow."

💡 Memory Tip

Cash FLOWS like water — in and out. Positive cash flow means more comes in than goes out.

Etymology

Compound of cash (immediate money) and flow (movement) — the movement of money.

Common Misspellings

cashflowcash flocash floecashfow

Related Terms

revenueprofitliquidity

See Also

expenses

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