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Cash flow is a critical aspect of financial health from "summary" of Financial Intelligence, Revised Edition by Karen Berman,Joe Knight
Cash flow is the lifeblood of any business. It is the movement of money in and out of a company, representing the core of its financial health. Without a positive cash flow, even a profitable business can quickly find itself in trouble. Understanding cash flow is crucial for making informed financial decisions and ensuring the long-term sustainability of a company. Cash flow measures the ability of a business to generate cash to pay its bills and invest in growth. It provides a clear picture of how well a company is managing its finances and whether it is on the path to success or facing potential challenges. By analyzing cash flow, businesses can identify areas of improvement, make strategic adjustments, and avoid cash shortages that could lead to financial distress. There are three main components of cash flow: operating activities, investing activities, and financ...
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