Go With the Cash Flow

摘要

Looks can be deceiving. Profit on paper can be worth just that: paper. The reality check is looking at your free cash flow. According to www.investopedia.com, cash flow is the amount of cash a company generates and uses during a designated period. Cash flow can be used as an indication of a company's financial strength. Having ample cash on hand is crucial and will ensure that creditors, employees and others can be paid on time. Jim Chamberlain is a management counselor for SCORE (Service Core of Retired Executives), a subset of the Small Business Administration (SBA), and says that cash flow is king. "Cash flow is the best measure, better than margin or profit. These two are Wall Street terms. To measure the success of a small business, it's all about cash flow."