What is Cash Flow?

A business's cash flow is its intake and outflow. A business's monthly or annual cash or cash-equivalent receipts or expenditures. A business's cash flow is either positive or negative. Cash flow has three primary types: Operating cash flow: This evaluates a company's primary business operations. Investing cash flow evaluates a company's investments in long-term assets, including property, plant, and equipment. Financing cash flow: This tracks a company's financing operations, such as issuing or repaying debt or purchasing or selling shares. Cash flow reflects a company's capacity to pay bills and invest in growth. Positive cash flow is usually a sign of financial strength.