Cash flow: defined by the Sticky-Marketing.com monthly magazine |
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The actual flows of cash into and out of an organisation, the starting balance at bank plus or minus the cash flow in a period will give increased or decreased working capital
requirements or loan requirements.
Cash flow is not the same as profitability. Some businesses tend to be cash generative (supermarkets for example) and can often fund all their working capital requirements while others (many
manufacturers for example) will need to finance their working capital most often through bank loans. This does not have a direct impact on profitability except in terms of the extra costs associated
with financing cash flow needs which are excess to available resources using bank loans or overdrafts.
See also working capital
10/06/2001 Use your browser back button or
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