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 whenever investors evaluate whether a company can pay dividends, fund growth, or survive tough times. It matters because cash is what keeps the lights on. For example, a growing retailer might show great sales numbers, but if it's spending cash faster than customers pay, it could face serious trouble. Strong cash flow is often a sign of a healthy, sustainable business.