![]() ![]() If a company has more money coming in than going out, it has a positive cash flow. > Read More: What is liquidity? Cash flow definition businessĬash flow is defined as the movement of cash and other liquid assets into, through, and out of a business. ![]() Here, we take an in-depth look at what cash flow is, how it is calculated, and how you can improve it. Though many people often focus on how profitable a business is, many experts argue that cash flow is a better indicator of how healthy a company or franchise unit is.
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