I read a lot about the definition but I can’t really get the hang of it.
Is it the cash that the company is left with at the end of the period? (Meaning the cash in their bank accounts *hypothetically*)
In: 14
It’s a measure how much cash is coming into and out of a business. Unlike a company’s profit statement which only looks at the income generated from selling goods and services and the expenses associated with making and providing those goods and services, cash flow looks at all ways a company can generate and spend its money. This would also include taking out/paying off loans, purchasing new assets or selling them off, all sorts of things that wouldn’t be included in a profitability calculation. A company’s cashflow statement is a better and more complete picture of the health of a company’s operation than just looking at its profitability.
This (https://www.youtube.com/watch?v=hefAHWvrFDQ) from the excellent finance YouTube channel The Plain Bagel summarizes it best.
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