Let’s Talk Money Word of the Day

Shonda Mileswww.Shondamiles.com

Cash Flow aka Net Cash flow• The difference between a company's cash inflows and outflows in a

given period. • Refers to the change in a company's cash balance as detailed on its

cash flow statement.

Cash Flow• Balance remaining after deducting cash outflows from cash inflows• If a company is consistently generating positive net cash flow over a

long period of time, this is the best indicator of its viability. • Conversely, continuing negative net cash flow is the prime indicator of

any number of operational or financing problems (though it could also mean that a business is growing rapidly and so requires more working capital than usual). (Accountingtools.com)

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