A company can have positive cash flow while reporting negative net income—due to depreciation, sale of an asset, and accrued expenses.

Cash flow, a measure of inflows and outflows, is one of the best ways to gauge a company’s short-term financial health. The name says it all: Cash flow refers to the movement of cash into and ...

Free cash flow is an indicator of a company’s financial strength, showing its ability to make payments as well as preserve cash to cover future expenses such as acquisitions. Free cash flow is ...

Net change in cash represents the difference in a company’s cash balance from one accounting period to the next. It’s a crucial figure found in the cash flow statement, giving insight into ...

Cash Flow Definition: The difference between the available cash at the beginning of an accounting period and that at the end of the period. Cash comes in from sales, loan proceeds, investments and ...

The financing activity in the cash flow statement measures the inflow and outflow of a firm's cash. It can be a helpful source of information for investors.