What factors affect cash flow?

Cash flow is an essential aspect of any business, as it refers to the amount of money coming in and going out of a company over a specific period. Several factors impact cash flow, including customer payment habits, operational costs, changes in demand, and economic environment. Late payment by clients, high inventory costs, and excessive spending are some of the common causes of a negative cash flow. On the other hand, effective cash management, timely payment from customers, and cost control measures can improve cash flow and lead to the long-term success of the company.

This mind map was published on 24 April 2023 and has been viewed 105 times.