Financials

Cash flow

Cash moving into and out of a company during a period.

What it means

Cash flow statements usually separate operating, investing, and financing activities. The statement helps explain how reported earnings connect to actual cash movement.

Example

A company can report net income while operating cash flow is lower because receivables or inventory increased.

What not to infer

Cash flow in one period does not describe all profitability, reinvestment needs, or future liquidity.