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 hear investors talk about cash flow because it shows whether a business can actually pay its bills, fund growth, and return money to shareholders. Think of it like your personal finances: you might earn $100,000 a year (profit), but if clients pay you slowly and you've got big expenses due now, you could still struggle to cover rent. Strong cash flow is a sign a company is genuinely healthy, not just cooking the books.