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Cashflow
Dictionary Entry

Cashflow

The cashflow of a company is the balance/difference between the revenue generated by said company and its expenses in a certain period of time (e.g. business year). In contrast to profit, fictitious expenses such as depreciation and provisions - i.e. non-cash transactions - may not appear in cashflow. Consequently, the cashflow of a company is an indicator for its liquidity and the ability to finance its operations by internally.

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