Positive cash flow

Positive cash flow,

Definition of Positive cash flow:

  1. 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.

Meaning of Positive cash flow & Positive cash flow Definition