What is the difference between cash flow and profit?

Profit represents earnings after expenses, while cash flow measures actual cash movement in and out of an entity.

How can businesses improve cash flow?

Businesses can improve cash flow by accelerating receivables, reducing expenses, managing inventory efficiently, and optimizing payment terms.

Why is positive cash flow important?

Positive cash flow ensures a business or investor has sufficient liquidity to cover expenses, reinvest in growth, and manage financial stability.

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What is CASH FLOW?

CASH RETENTION RATIO

Cash Retention Ratio measures the percentage of the account's initial balance still available as total cash. It reflects the trader's ability to preserve liquidity relative to their starting capital, aiding in financial performance analysis.