Cash flow refers to the total amount of money being transferred into and out of a business, especially affecting liquidity. Cash flow statements are essential financial tools for tracking the amount of cash generated by a business over a period. Positive cash flow indicates that a company’s liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders, and more effectively cover expenses.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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