The level of competition in a market affects the cash flow for two reasons. First, in a more competitive market, businesses distribute less dividends to their shareholders because they are reinvesting the profits back into the business in order to stay competitive.
Second, in a more competitive market, businesses are forced to offer lower prices, which reduces the amount of cash flow that they receive from customers. This means that businesses in a more competitive market have less money to work with, which affects their ability to grow and expand.