CASH FLOW Meaning and
Definition
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Cash flow is a popular financial concept that refers to the net amount of cash generated or consumed by a business or individual during a specific period of time. It represents the flow of cash into and out of a company, typically measured on a monthly, quarterly, or annual basis. Cash flow is a vital indicator of a company's financial health, as it reflects its ability to cover operational expenses, meet debt obligations, invest in growth opportunities, and generate profit.
Positive cash flow signifies that the amount of money coming into the business is greater than the amount being paid out, resulting in surplus cash. This surplus can be used to fund future operations, repay debts, distribute dividends, or reinvest in the company. On the other hand, negative cash flow occurs when the amount of money flowing out exceeds the incoming cash, indicating potential financial difficulties or cash constraints.
Cash flow is derived from various sources, including revenue from sales, loans, investments, and the sale of assets. It incorporates cash inflows from customers and clients, as well as cash outflows for expenses such as salaries, rent, utilities, inventory, and debt repayments. Managing cash flow effectively is essential for businesses to maintain liquidity, make informed financial decisions, and plan for future growth and stability.
Analyzing cash flow is a critical aspect of financial management, as it provides valuable insights into a company's ability to generate and manage cash resources. It aids in evaluating the sustainability and profitability of a business, ensuring its ability to fulfill financial obligations and pursue strategic goals.
Common Misspellings for CASH FLOW
- xash flow
- vash flow
- fash flow
- dash flow
- czsh flow
- cssh flow
- cwsh flow
- cqsh flow
- caah flow
- cazh flow
- caxh flow
- cadh flow
- caeh flow
- cawh flow
- casg flow
- casb flow
- casn flow
- casj flow
- casu flow
Etymology of CASH FLOW
The word "cash flow" originated from two separate terms: "cash" and "flow".
The term "cash" is derived from the Middle French word "caisse", which means a money-box or treasury. It further traces back to the Latin word "capsa", meaning chest or box.
The term "flow" originated from the Old English word "flowan", which means to flow or stream. It is related to the Old Norse word "flóð", which has a similar meaning.
When these two terms are combined, "cash flow" refers to the movement of money into and out of a business or organization, much like the flow of a stream. It is used to describe the inflow and outflow of funds in a specific period, such as monthly or annually, and is commonly used to assess the financial health and stability of a business.
Idioms with the word CASH FLOW
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a cash flow problem
The idiom "a cash flow problem" refers to a situation in which an individual, business, or organization faces difficulty managing their available funds to meet necessary expenses or financial obligations, such as paying bills, salaries, or debts. This problem may arise from insufficient income, excessive expenses, or poor financial management, causing a temporary or ongoing shortage of cash.
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cash flow problem
A "cash flow problem" refers to a financial situation where a person, business, or organization faces difficulties in managing their incoming and outgoing cash flow. It describes a scenario where expenses exceed the available cash on hand, causing a temporary or prolonged imbalance in financial stability. This often results in challenges to meet financial obligations, such as paying bills, salaries, or other obligations promptly.
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cash flow
Cash flow refers to the movement of money in and out of a business or personal account, typically referring to the amount of cash available for spending or saving at any given time. It is an important indicator of financial health and liquidity.
Similar spelling words for CASH FLOW
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