Cash Flow


  • The amount of money (after expenses are subtracted) that is generated by an investment or a business during a specific time period. One measure of cash flow is earnings before interest, taxes, depreciation, and amortization. Cash flow is often considered to be a company's most important financial statistic because money drives business.

revenue, earnings, profit, income

Related Terms and Acronyms

  • Accounting Period (AP) Acronym, Important,
    • The time period used in a set of accounting books or financial statements, often 12 months.
  • Cash Flow Forecast Definition,
    • An estimate of when and how much money will be received and paid out of a business. It usually records cash flow on a month-by-month basis for a period of two years.
  • Debt/Equity Ratio Definition,
    • A comparison of debt and equity used to measure the health of a business.
  • Financing Expenses Definition,
    • Expenses sustained from interest payments, financing, and dividends to shareholders.
  • Household Income (HHI) Acronym, Important,
    • The total income of all members of a household.
  • Income Statement Definition,
    • Also known as the profit and loss statement or P&L, enables you to calculate your company's pre-tax profits by subtracting total expenses from total revenues.
  • Loss Definition,
    • When expenses are larger than revenues.
  • Net Cash Flow (NCF) Acronym,
    • Incremental after-tax income plus depreciation expense resulting from investment.
  • Operating Cash Flow (OCF) Acronym,
    • The money a company generates from its business operations. This revenue excludes costs from certain investments.
  • Operating Loan Definition,
    • A loan intended for short-term financing, supplying cash flow support or to cover day-to-day operating expenses.
  • Operational Expenses (OpEx) Abbreviation,
    • Costs accruing from a business's business operations.
  • Retained Earnings Definition,
    • All of the profits or losses accumulated from prior years and from the present year's income statement, minus dividends paid to you.
  • Revenue Definition,
    • Money earned by a company from its business activities.
  • Royalty Income Definition,
    • Payment for the use and exploitation of certain kinds of property, such as artistic or literary works, patents and mineral rights.
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