§ Cash flow
Cash flow
Glossary version 2026-07-12.v1 · reviewed July 12, 2026
Money moving into and out of a business. Analysts separate operating, investing, and financing cash flows to see whether reported profit becomes usable cash and how that cash is funded or spent.
Cash flow describes the actual movement of money through a business. Operating cash flow covers the core business, investing cash flow covers assets and acquisitions, and financing cash flow covers debt, dividends, and share transactions. Comparing those flows with net income helps readers distinguish accounting profit from cash that can fund reinvestment, repay debt, or be returned to shareholders.