LeoGlossary: Cash Flow

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Cash Flow takes on different meanings when associated with a company as compared to an investment.

With a corporation, cash flow from operations is important because it reflects upon the ability to pay dividends. It is vital that companies get it positive since a negative cash flow eats up resources and can lead to bankruptcy.

In investing, cash flow represents earnings. This is figured before depreciation, amortization, and other non-cash charges.


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