#### Definition: Cash flow shows the net amount of liquid funds flowing in and out of a company over a given period.
#### Details: It is a key indicator of a company’s financial stability and liquidity.
- Operating cash flow: from core business operations
- Investing cash flow: from asset purchases or sales
- Financing cash flow: from loans, capital increases, or dividends
#### Relevance in a transaction context: Stable cash flow is critical for company valuations – especially in methods like the Discounted Cash Flow (DCF) approach.