Cash Flow (CF)

Cash flow (CF) refers to the amount of cash that is generated or consumed by a business over a specific period of time. It is a crucial metric for commercial professionals as it provides insight into a company's financial health and ability to meet its financial obligations. Cash flow is calculated by subtracting a company's cash outflows (such as expenses, investments, and debt repayments) from its cash inflows (such as revenue, loans, and investments). A positive cash flow indicates that a company is generating more cash than it is spending, while a negative cash flow suggests that a company may have difficulty meeting its financial obligations. Monitoring and managing cash flow is essential for commercial professionals to ensure the long-term viability and success of a business.