Cash flow and its Impact on the Business Agility of Indian companies

In the world of continuous evolution, being adaptable has never been so important. Sustainability in any business requires its ability to keep up with the pace of rapidly changing market. Numerous factors such as market environment, technology, government regulations, organizational culture, organizational architecture impact the way an organization responds to a change. Organization 's cash flow is also one of the primary factor that impacts its business agility. According to Investopedia, Cash flow is considered as the net amount of cash and cash equivalents being transferred into and out of a business. Positive cash flow indicates the increasing liquid assets of a company, which helps in settling debts, reinvest in the business, return money to the shareholders, pay expenses and provide a buffer against future financial challenges. There is also a term called as Free Cash Flow (FCF), which is a useful measure of financial performance. FCF shows what money the company has leftover to expand the business or return to the shareholders, after paying back dividends, buying back stock or paying off debt. Substantially high amount of cash flow results in a positive cultural environment in the organization. This research focuses on how high cashflow have positive effect on Indian companies which lead to their high ESG (Environmental, social and governance) performance and make them relatively more agile than their traditional peer companies.