What Is Cash Flow ? And Why Is It Important ? | Cash Flow Explained | HDFC Securities

Find out What Is Cash Flow? And Why Is It Important ?.
Cash flow is all about the money flowing in and out of a company. A cash Flow Statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The general rule is that if the cash coming in is greater than the cash going out, the company is probably in good financial health. But that’s not completely true. Sometimes, a positive cash flow can be the result of the unprecedented sale of assets. Thus, it is important to analyse the entire cash flow statement instead of relying just on the balance.

Cash Flow is a significant document for investors because it is a key measure of strength, profitability, and the long-term future outlook for a company.

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