Cash flow

Cash flow basically tracks the money made by the business (incoming) and and its expenses (outgoing). Cash flow statement determines whether the company is capable of paying down debt and other obligations relevant for creditors or bond investors, how efficient the business does its operations, and most importantly if it is making even a single Penny, Pence, Yen or Centavo whichever you might call it as long as it is positive. For investors interested in the company's stock, a positive cash flow clears the way for expansion or growth. A negative cash flow restricts the ability of the company to expand its operation as it might resort to issuance of more debt just to finance its operations or ultimately go bankrupt.

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