Dictionary
Financial Glossary
|
 |
| Glossary
> C
> "Cash flow" Definition |
 Cash flow
In investments, it represents earnings before depreciation, amortization and non-cash charges. Sometimes called cash earnings. Cash flow from operations (called funds from operations) by real estate and other investment trusts is important because it indicates the ability to pay dividends.
The amount of money which flows in and out of a business, the difference between the two being the important number. If more money flows into a business than out of it, it is cash positive. If more money flows out than in, it is cash negative.Cash flow is regarded by many as the ultimate test of financial health. Seasoned analysts do not entirely trust the figure a company puts on its profits, since profits can be "massaged", whereas cash is more difficult to manipulate. Profit, as they say, is a matter of opinion. Cash is a matter of fact.The best way to check the cash flow position of a company is to scrutinise the cash flow statement in its annual report and accounts. It provides fact on whether a company has generated or consumed cash in the year, and how. It can be used in conjunction with the p&l to assess the trading results, or it can be used in conjunction with the balance sheet to assess liquidity, solvency and financial flexibility.
|
|
Glossary 
|
|
|
|
Dictionary
|
|
Cash flow - In investments, it represents earnings before depreciation, amortization and non-cash charges. Sometimes called cash earnings. Cash flow from operations (called funds from operations) by real estate and other investment trusts is important because it indicates the ability to pay dividends.
The amount of money which flows in and out of a business, the difference between the two being the important number. If more money flows into a business than out of it, it is cash positive. If more money flows out than in, it is cash negative.Cash flow is regarded by many as the ultimate test of financial health. Seasoned analysts do not entirely trust the figure a company puts on its profits, since profits can be "massaged", whereas cash is more difficult to manipulate. Profit, as they say, is a matter of opinion. Cash is a matter of fact.The best way to check the cash flow position of a company is to scrutinise the cash flow statement in its annual report and accounts. It provides fact on whether a company has generated or consumed cash in the year, and how. It can be used in conjunction with the p&l to assess the trading results, or it can be used in conjunction with the balance sheet to assess liquidity, solvency and financial flexibility.
Cash flow : in investments, it represents earnings before depreciation, amortization and non-cash charges. sometimes called cash earnings. cash flow from operations (called funds from operations) by real estate and other investment trusts is important because it indicates the ability to pay dividends.
the amount of money which flows in and out of a business, the difference between the two being the important number. if more money flows into a business than out of it, it is cash positive. if more money flows out than in, it is cash negative.cash flow is regarded by many as the ultimate test of financial health. seasoned analysts do not entirely trust the figure a company puts on its profits, since profits can be "massaged", whereas cash is more difficult to manipulate. profit, as they say, is a matter of opinion. cash is a matter of fact.the best way to check the cash flow position of a company is to scrutinise the cash flow statement in its annual report and accounts. it provides fact on whether a company has generated or consumed cash in the year, and how. it can be used in conjunction with the p&l to assess the trading results, or it can be used in conjunction with the balance sheet to assess liquidity, solvency and financial flexibility.
