How are cash flow and revenue related?

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.