™Two companies can report the same headline figure while cash flow provides different context because their margins, debt, share counts or accounting differ.
Fundamentals
Cash flow
Cash generated or used by a business during a period, categorized by operating, investing and financing activity.
Plain-English context
Why it matters
This concept helps translate company reports into questions about business quality, valuation and financial durability.
Using Cash flow alone to label a security cheap, expensive, strong or weak.
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