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Cash flow
Example
A positive cash flow allows a company to reinvest in its operations, pursue growth opportunities, and weather unexpected financial challenges.
A consistent negative cash flow may indicate financial distress, prompting businesses to implement cost-cutting measures or seek additional financing.
During periods of economic uncertainty, businesses often focus on maintaining a healthy cash flow to enhance financial resilience.
The construction project experienced delays, impacting the contractor's cash flow as expenses continued while payments were delayed.
Effective cash flow management is crucial for businesses to meet short-term financial obligations and ensure operational sustainability.
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