This is for the novice but certainly worth a refresher for the more experienced investor.
We will say this though. Cash Flow is being confused in the linked article with Net Profit (which is that portion of a cash flow that falls into positive territory or in the black rather than red). Cash Flow, per se, is just that: the flow. It can be positive (a profit) or negative (a loss). It is not, contrary to the author’s statement, “…the money left over after all the bills are paid. It’s the money that goes in your pocket.”
We’re sure the author, Brandon Turner, understands Negative v. Positive Cash Flow but just didn’t initially say Positive Cash Flow, rather than just Cash Flow, where he should have when defining Flow.
With that in mind, enjoy:.