Meaning and categories
Cash flow describes the movement of money during a period. Receipts form inflows, payments form outflows, and the difference is net cash flow. Operating, investing and financing activities are usually analyzed separately: the same ending cash balance can arise for entirely different reasons.
Illustrative calculation
If 90,000 roubles enter an account during a month and 65,000 roubles are paid out, net cash flow is positive 25,000 roubles. But if most inflows came from a new loan, that does not show that the business earns well from sales. The source of the money is fundamental.
Cash flow is not profit
Cash flow is not the same as profit: equipment purchases, loan repayment and sales on deferred payment appear differently in the two measures. To assess business resilience, review several periods, exclude one-off receipts and determine whether operating cash is sufficient to maintain activity and service debt.