| Cash
Flow |
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The
amount of cash a company generates and uses during a period, calculated
by adding noncash charges (such as depreciation) to the net income
after taxes. Cash Flow can be used as an indication of a company's
financial strength.
It is also sometimes referred to the "money value"
of trades in a stock during a trading day.
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Cash
flow is crucial to companies, having ample cash on hand will ensure
that creditors, employees and others can be paid on time. |
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