The essence of cash flow as an economic category

This article studies the essence of cash flow as an economic category. The article aims to analyze, systematize, and summarize existing theoretical approaches to defining the concept of cash flow and improving the methodological support for their management. The article examines the concept and characteristics of a company’s cash flows as an important element of financial management. The study presents an analysis of theoretical approaches to defining cash flow and its significance for the financial stability of an enterprise. It has been found that cash flow is a set of receipts and expenditure of cash and cash equivalents arising from the enterprise’s business activities, and its effective management ensures the stability of financial processes. The study substantiates the need to understand cash flow as a dynamic process, which includes operational, investment, and financial cash flows, all of which collectively influence the liquidity and solvency of the enterprise. Key characteristics of cash flow are presented, such as continuity, determinism, stability, duration, and regularity, which form the basis for achieving the enterprise’s financial stability. The study revealed that the lack of a clear regulatory framework for defining cash flow within national legislation leads to various interpretations of this term, complicating its application in accounting and financial reporting practices. The importance of cash flow for strategic management of enterprises is emphasized, as it ensures not only financial stability but also the company’s growth in the long term. Special attention is given to the classification of cash flows by activity type: operational, investment, and financial, which allows for a precise analysis of the sources and directions of fund usage. The research also confirms the importance of cash flows for forecasting financial results and assessing investment risks, which enables effective resource management and reduces financial risks. The study underscores the need to develop a coordinated approach to defining and analyzing cash flows at the legislative level and the significance of this category for strategic financial management in enterprises. Keywords: cash flow, financial management, liquidity, investment flows, manageability, continuity.