Cash Flow

Cash flow is the actual money moving in and out of a company's bank account. It's different from profit—a company can look profitable on paper but still run out of cash if customers don't pay their bills quickly or if it spends heavily on inventory. You'll see cash flow mentioned constantly in financial reports because it shows whether a business can actually pay its bills, fund growth, and return money to shareholders. Think of it like your personal checking account: you might earn $100,000 a year, but if clients pay you slowly and you spend $120,000, you'll hit the overdraft. Investors care deeply about cash flow because it's harder to fake than accounting profits.