What key information can be derived from a positive cash flow?

A positive cash flow signifies that a company is generating more cash than it is spending during a specific period. This is a crucial indicator of financial health, particularly in terms of liquidity. When cash inflows exceed outflows, it allows the company to cover its operational expenses, invest in growth opportunities, and meet obligations to creditors and shareholders with greater ease.

This situation enhances the company's liquidity, meaning it has sufficient liquid assets to promptly meet short-term liabilities. As a result, shareholders and potential investors view positive cash flow favorably, as it suggests stability and the potential for future profitability, as well as the ability to weather financial difficulties.

Other options do not directly relate to what positive cash flow signifies. A decrease in equity, an increasing debt load, and market capitalization changes pertain to different aspects of financial analysis and health. Thus, the identification of positive cash flow specifically aligns with the understanding of enhanced liquidity in a company's financial structure.