Cash Flow represents the cash generated by an asset, group of assets, or business enterprise over a period. It may be used in a general sense to encompass various levels of specifically defined cash flows. The term cash flow may represent different levels and arises from operating, investing, and financing activities, or a specific definition in the given valuation context. Cash flow from operating activities represents the amount of money a business generates from its normal activities and comprise net income (from the income statement) plus non cash expenditure items such as depreciation amortisation and taxes, and taking into account changes in current assets and current liabilities. A positive operating cash flow signals a good financial health of the business and vice versa. Cash flow from financing activities represents the sources of funds into the business such as equity, debt, and other forms. It represents the capital structure of the business. Cash flow from investment activities is made up on cash generated or spent on physical/capital assets, investments in securities, and other long-term commitments such as research and development. To arrive at the net cash flow, net operating cash flow is added to the net cash flow from financing activities minus the net cash flow from investing activities. Net cash flow is at the heart of the Discounted Cash Flow (DCF) method of business valuation.