oboloo Glossary

Cash Flow And A Source Of Value

oboloo Glossary

Cash Flow And A Source Of Value

Cash flow is the lifeblood of any business and a source of value for investors. It refers to the amount of money coming into or going out of a business over a specified period of time. Positive cash flow means that your business is making more money than it’s spending, while negative cash flow means that it’s spending more than its income. A healthy cash flow enables businesses to pay off debts, reinvest in their operations, and create wealth. It’s also a key factor used by investors to evaluate companies and make decisions about whether or not to invest. Long-term sources of value include recurring revenue streams such as subscriptions, as well as investments and real estate that can appreciate in value over time. The bottom line is: cash flow is essential for driving value in any business.