expression

cash flow

money moving into and out of a business

In Banking & Finance

In more detail

1. (noun) the movement of money into and out of a business

2. (noun) the amount of money actually received and paid out by a business during a specific period

Examples

1. The company has good cash flow because customers pay their invoices quickly.
2. We need to improve our cash flow to pay our employees on time.

How to use cash flow

Cash flow refers to the actual movement and timing of money through a business, distinct from profitability. It is essential in financial analysis because a company can be profitable on paper yet face liquidity crises if cash flow is poor. The term is used in accounting, finance, and business management contexts.

Common phrases

positive cash flow
negative cash flow
cash flow problems
improve cash flow
cash flow statement
cash flow forecast

Synonyms

liquidity · working capital · money flow · funds movement · operational cash

Word family

cash-strapped · cashless

A common mistake

Learners often confuse cash flow with profit; a business can be profitable but still have negative cash flow if money is tied up in inventory or receivables.

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