Glossary definition

What is cash flow?

Cash flow is the amount of money flowing into a business (typically from things such as sales or investments) or the money flowing out of a business (typically through costs such as purchases and overheads).

A positive cash flow is desirable, while a negative cash flow means a business is troubled. According to entrepreneur and former Dragons’ Den star Theo Paphitis: “Cash flow is king. Profit is sanity. Turnover is vanity.”

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