Cash flow vs cost of goods sold

Cash flow vs. COGS: Both financial metrics are important to your business's success and growth, but they serve different purposes. While a positive cash flow is critical to facilitate the day-to-day operations of your business, a lower cost of goods sold allows you to reinvest the profit in expanding the product line.

It's essential to strike a balance between these two metrics and consider them in relation to other factors like pricing, quality, and customer demand.