Finxl is leading Equity Research Courses/Certification/Training in Pune, Equity Research Online courses/Training in Pune. We also provide certification in equity research in Pune.What is Cash Flow?
Cash flow literally means the inflow and outflow of money in your account. If you ever kept track of your income and expenses of a month, then you already caught a glimpse of cash flow. As we discuss cash flow, we are referring to essentially three types:
1. Cash flow from operation: This cash is drawn from normal activities. For a company, it would be sales revenue minus all expenses like rents, wages, and purchases. For an individual, it would be his monthly earnings like salary or freelance, minus all his expenses of living like grocery, etc.
2. Investing cash flow: This is cash spent or generated through investments. It could be representing to a business to buy new equipment-outflow or selling an asset-inflow. To an individual, investing cash flow could be an investment in stocks, real estate, or even some saving accounts accumulating interest.