Entity: CASHFLOW
Cash flow refers to the net cash and cash equivalents that move in and out of a company's financial statement, indicating its liquidity and financial health.
CASHFLOW
Etymology
The term 'cash flow' originated from the concept of the movement of cash and cash equivalents within a business or financial entity.
Definition
Cash flow is the net cash and cash equivalents that move in and out of a company's financial statement, reflecting its liquidity and financial position.
Historical Context
Cash flow analysis has been a fundamental aspect of financial management, helping businesses assess their ability to meet financial obligations and invest in growth opportunities.
Cultural Significance
Understanding cash flow is crucial for businesses to manage their operations effectively, make strategic decisions, and ensure long-term sustainability.
Related Concepts
Cash flow is closely related to concepts such as liquidity, profitability, and financial stability, forming a key component of financial analysis and planning.
See Also
A measure of an organization's liquidity that usually consists of net income after taxes plus noncash charges against income, representing the amount of money moving into and out of a business.