Cash Flow
Definition:
Cash flow is the movement of money into and out of a business. It is an important measure of a business's financial health because it indicates whether the business is generating enough cash to meet its obligations.
Example:
There are two main types of cash flow: operating cash flow and free cash flow.
Operating cash flow is the cash flow generated from a business's core business activities. It is calculated by subtracting operating expenses from operating revenue.
Free cash flow is the cash flow that is available for a business to use after it has met all of its operating expenses and debt obligations. It is calculated by subtracting capital expenditures from operating cash flow.