Cash Flows From Operations, also known as CFFO, is a term that describes how cash enters and leaves a business. It’s an important element of financial analysis as it indicates whether a company has enough working capital to keep operating and servicing its debts, or if the company is in danger of becoming insolvent. CFFO measures incoming and outgoing monies related to a company’s day-to-day operations like manufacturing products, delivering services and more — giving businesses, investors and creditors an accurate picture of a company’s financial performance over time.