positive cash flow |
Definition
Normal situation where the cash inflows during a period are higher than the cash outflows during the same period. Positive cash flow does not necessarily means profit, and is usually due to a careful management of cash inflows and expenditure. Persistent and large positive cash flows may indicate the firm is not keeping enough stocks of raw materials or finished products, and might be losing sales due to shortages.
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positive cash flow is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
positive cash flow appears in the definitions of the following terms: cash cow and cash flow
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