Cash flow: the lifeline of corporate finances

Cash flow refers to the flow of money into and out of the company over a given period of time and provides an important insight into a company's liquidity and financial health. This metric is critical in assessing a company's ability to meet its ongoing obligations, invest and grow without having to raise additional capital. A positive cash flow balance sheet is essential to a company's long-term stability and growth potential, as it forms the basis for operational and strategic decisions.