beprofit logo
ProductExpand more icon
profit calc image
Profit Simulators
Tweak your numbers to lift profits up
action card image

Demo Store

Want to see our
dashboard in action?
ResourcesExpand more icon
CompanyExpand more icon
Want to see our dashboard in action?
you can try it here with theDemo Store!

How are cash flow and revenue related?

Asked a year ago

What's the difference between the two? I always thought they were the same thing but my colleague says otherwise.

Abeeha Qasmi

Wednesday, February 15, 2023

Although related, cash flow and revenue are two different things. Cash flow is the movement of cash in and out of business, while revenue is the total amount of money a company earns from its sales and services.

However, revenue doesn’t always translate to cash flow. A company can have a high revenue but still experience negative cash flow if its expenses exceed its income. This could be due to high expenditures, operating costs, heavy investments, and slow payment collections from customers.

Write an answer...


Please follow our  Community Guidelines

Can't find what you're looking for?