rahanvirtauksen

Rahanvirtaus, often translated as cash flow, refers to the movement of money into and out of a business or financial entity over a specific period. It is a crucial indicator of a company's financial health and its ability to meet its short-term obligations. Positive cash flow signifies that more money is coming in than going out, indicating a healthy operational capacity. Conversely, negative cash flow suggests that expenses are exceeding income, which can signal financial distress.

There are generally three types of cash flow: operating cash flow, investing cash flow, and financing cash flow. Operating cash flow is generated from the normal day-to-day business activities, such as sales revenue minus operating expenses. Investing cash flow relates to the purchase and sale of long-term assets like property, plant, and equipment. Financing cash flow arises from activities involving debt and equity, such as issuing stock, borrowing money, or repaying loans.

Analyzing cash flow helps stakeholders, including management, investors, and creditors, understand a company's liquidity, solvency, and overall financial performance. It provides insights that may not be apparent from the income statement alone, as it tracks the actual movement of cash rather than accounting profits. Effective cash flow management is essential for a company's survival and growth, enabling it to fund operations, invest in new projects, and repay its debts.