What is Cash Flow in Retail? Explained

Cash flow is the dynamic movement of money in and out of a business during a specified period. It serves as a pivotal financial metric, offering insights into a company's liquidity and operational vitality. Positive cash flow denotes that more money is entering the business than exiting, indicating the capacity to cover expenses, invest, and fulfill financial commitments. Conversely, negative cash flow implies that a business is spending more than it earns, potentially leading to financial challenges. Skillful cash flow management involves vigilant monitoring of inflows and outflows, budgeting, and ensuring sufficient liquidity to meet short-term obligations, ultimately supporting operational stability and facilitating growth.