Investor Glossary-cash flowInvestor Glossary-cash flowInvestor Glossary-cash flowInvestor Glossary-cash flowInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Cash Flow

The HTML to link to this page
 

Cash flow is a company's net inflow or outflow of cash. A cash flow statement (formally known as the statement of cash flows) shows a company's cash flow from its operating, financing, and investing activities during an accounting period, and it is now required under Generally Accepted Accounting Principles. More informally, cash flow often means cash flow from operations, which is computed as net income plus noncash charges, especially depreciation. Indeed, a quick definition of cash flow is net income plus depreciation. Analysts often emphasize cash flow, as opposed to net income, because cash is the most liquid and tangible asset, while net income necessarily includes charges and credits that do not affect the company's bank account. Many analysts refine the concept of cash flow to mean "free cash flow," the amount of cash available to the company after funding capital projects. In its simplest definition, free cash flow is net income plus depreciation less capital expenditures.



Rate this cash flow definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, current ratio, phantom income, APR, limit order, class C shares, labor relations, diluted share, covered put, dividends payable, debt service coverage, option premium, per diem, irrevocable trust, stock split, inflation, cancelled check, risk management, required rate of return, 1035 exchange, FICO score, 144a, minority interest, Key Rate Duration, average price per share, deferred revenue, liquidity ratio, command economy, annual return, LIBOR, quality assurance, VIX, ex-dividend, ex-dividend date, open position, in escrow, wholly-owned subsidiary, EBITDA, implied volatility, retained earnings, balance sheet, deferred tax, margin rate, 1031 exchange, Zero Cost Collar, FTSE, stock market close, 401a, real GDP


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use