Definition

Noun: 1. The movement of money into and out of a business or project: Specifically, it refers to the net amount of cash and cash-equivalents being transferred into and out of a company during a specific period. Positive cash flow indicates more money is coming in than going out, while negative cash flow indicates the opposite.

Examples of Usage

• Noun:
  • The startup struggled due to poor cash flow in its first year.
  • A detailed cash flow statement is essential for financial planning.
  • Investors were reassured by the company's strong, positive cash flow.

Advanced Usage

• "to improve cash flow": To take actions that increase the net amount of cash available.
  • The company renegotiated payment terms with suppliers to improve its cash flow.
• "cash flow problem": A situation where a business does not have enough cash to meet its immediate obligations.
  • Many profitable businesses fail because of a temporary cash flow problem.

Variants and Related Words

• Cash flow statement (n): A financial report that shows the sources and uses of a company's cash during a specific period.
  • The accountant prepared the quarterly cash flow statement.
• Free cash flow (n): The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
  • Analysts look at free cash flow to assess a company's financial health.

Synonyms

• Liquidity: The availability of liquid assets to a market or company.
• Net cash position: The total cash balance after accounting for inflows and outflows.

Related Phrases

• Cash flow from operations: Cash generated from the core business activities of a company.
  • The report showed a significant increase in cash flow from operations.
• Discounted cash flow (DCF): A valuation method used to estimate the value of an investment based on its expected future cash flows.
  • The analyst used a discounted cash flow model to value the company.

Noun

1. the excess of cash revenues over cash outlays in a give period of time (not including non-cash expenses)