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What is Cash Flow?
Cash flow is usually understood to be the total amount of cash that is generated and received by a company, along with the amount of cash that is used for expenses of the organization.
Monitoring cash flow is considered essential to having an accurate picture of the financial stability of the business, and often can yield information that can be used to improve the economic condition of the company.
Usually before investing in a business, investors would look at the cash flow of the company. Cash flow determines the current financial health of the company and if it is consistent and cash flow is strong, investors have no hesitation to plough their monies in the company's stock.
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