Cash Flow Forecast

Definition

• An estimate of time and the amount of money that will be received and paid out of a business. The cash flow forecast typically records cash flow on a month-by-month basis for a two year period.

Synonyms
cash flow management, revenue, earnings forecast, projected profit

Related Terms and Acronyms

• Break-Even Point (BEP) — Acronym,
  • The point at which expenses meet income or savings. In home finance, the break-even point often refers to the time it takes to recoup the costs of refinancing a loan or paying discount points.
• Cash Flow — Definition,
  • The money an investment produces after subtracting cash expenses from income.
• Debt/Equity Ratio — Definition,
  • A comparison of debt and equity used to measure the health of a business.
• Gross Profit Margin — Definition,
  • The difference between the sales your business generates and the costs you pay out for goods.
• 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.
• Profit — Definition,
  • When revenues exceed expenses.
• Rate of Return (RR, ROR) — Acronym, Important,
  • The profit an investment generates, expressed as equity divided by cash flow.
• Return on Investment (ROI) — Acronym, Very Important,
  • The profit an investment generates, expressed as equity divided by cash flow.
• Revenue — Definition,
  • Money earned by a company from its business activities.