Vareto Finance Glossary
Cash Inflows
Definition
Cash inflow is the money that goes into a business, whether from sales, investments, or even financing. If a business's cash inflow is greater than its outflow, it is considered healthy.
Example
Some examples of cash inflow are payments received from customers, returns generated on investments, and interest earnings.
Why it matters
Cash inflows are a good indicator of a company's health. Cash inflows can be checked from the cash flow statement of the company. A cash flow statement shows the various sources of cash inflow for the business. It can also help in identifying long-term trends for how much and how the company has earned the money.A company's past cash performance may not necessarily be an indicator of its future cash inflows.
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