What is cash flow?

Definition of Cash Flow, Cash Flow Meaning - The Economic Times Definition: The amount of cash or cash-equivalent which the company receives or gives out by the way of payment (s) to creditors is known as cash flow. Cash flow analysis is often used to analyse the liquidity position of the company.

Is cash flow a good measure of financial health?

Cash flow, a measure of inflows and outflows, is one of the best ways to gauge a company’s short-term financial health. Cash flow is a great measure of a company's current health. What Is Cash Flow? What Are the Three Types of Cash Flows? Can Cash Flow Be Negative? Are Cash Flow and Profit the Same?

What is free cash flow to the firm (FCFF)?

Free Cash Flow to the Firm (FCFF) – This is a measure that assumes a company has no leverage (debt). It is used in financial modeling and valuation. Read more about FCFF. Net Change in Cash – The change in the amount of cash flow from one accounting period to the next. This is found at the bottom of the Cash Flow Statement.

What does a positive cash flow mean?

When businesses have a positive cash flow, it means they have increased their liquid assets.⁵ Positive cash flow occurs when a business is left with cash even after paying all cash outflow expenses such as operations and debt.