Cash flow

The amount of cash that is generated or consumed by an investment over a specific period.

  • Positive cash flow occurs when the amount of cash that is generated by an investment exceeds the amount of cash that is consumed by it. This is generally considered to be a good thing for investors, as it means that the investment is generating cash that can be used for other purposes.

  • Negative cash flow occurs when the amount of cash that is consumed by an investment exceeds the amount of cash that is generated by it. This is generally considered to be a bad thing for investors, as it means that the investment is consuming cash that could be used for other purposes.

It can be measured on a monthly, quarterly, or annual basis, depending on the investment and the investor's preferences. It is an important metric for investors to consider when making investment decisions, as it provides insight into the financial health of the investment.