cash inflow should be after __buy before __
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BUSINESS CORPORATE FINANCE & ACCOUNTING
Cash Flow
By
ADAM HAYES
Reviewed by
AMY DRURY
Updated May 31, 2021
What Is Cash Flow?
Cash flow is the net amount of cash and cash equivalents being transferred into and out of a business. Cash received represents inflows, while money spent represents outflows.
At a fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows or, more specifically, maximize long-term free cash flow (FCF). FCF is the cash that a company generates from its normal business operations after subtracting any money spent on capital expenditures (CapEx).
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