What is Cash Flow? Analyzing a company’s cash-flow provides critical information about its financial health, business activities, and reported earnings. Based on the analysis, future money flows are projected. Consequently, financial analysts plan short-term goals, long-term goals, working capitalWorking CapitalWorking capital is the amount available to a company for day-to-day expenses. It’s a measure of a company’s liquidity, efficiency, and financial health, and it’s calculated using a simple formula: “current assets (accounts receivables, cash, inventories of unfinished goods and raw materials) MINUS current liabilities (accounts payable, debt due in one year)“read more, and the optimum cash level required for business operationsBusiness OperationsBusiness operations refer to all those activities that the employees undertake within an organizational setup daily to produce goods and services for accomplishing the company’s goals like profit generation....