cash flow
Plural
cash flows
1
the movement of money in and out of a business or financial system, indicating its liquidity and financial well-being
- Effective cash flow management is crucial for businesses to meet short-term financial obligations and ensure operational sustainability.
- A positive cash flow allows a company to reinvest in its operations, pursue growth opportunities, and weather unexpected financial challenges.
- During periods of economic uncertainty, businesses often focus on maintaining a healthy cash flow to enhance financial resilience.
- The construction project experienced delays, impacting the contractor's cash flow as expenses continued while payments were delayed.
- A consistent negative cash flow may indicate financial distress, prompting businesses to implement cost-cutting measures or seek additional financing.