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Cash flow |
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Cash flowThe amount of money actually available to a business to make purchases and pay current bills and obligations; the difference between cash received and cash paid out over a given period of time.Cash flowIn investments, cash flow 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.Cash flowThe 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.Similar MatchesCash extractionCash extractionA defensive strategy using warrants to replace the exposure to assets at a lower price, thereby releasing cash. Cash and equivalentsCash and equivalentsThe value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and bankers' acceptances. Cash equivalents on balance sheets include securities that mature within ninety days. Cash surrender valueCash surrender valueThe amount an insurance company will pay if the policyholder tenders or cashes in a whole life insurance policy. Cash & carryCash & carryApplies to derivative products. Combination of a long position in a stoc../../finance-glossary/index/commodity and short position in the underlying futures, which entails a cost of carry on the long position. General cash offerGeneral cash offerA public offering made to investors at large. Further SuggestionsNominal cash flowCash Settlement cashback Cash commodity Cash price Cash reserves Cash deficit cash value life insurance Cash delivery Cash management Statement of Cash Flows Method net cash flow Operating cash flow Target cash balance Cash management bill Cash on delivery (COD) Mortgage cash surplus cash market cash settlement Cash account Cash flow time line Cash sale or settlement Cash flow matching Negative cash flow free cash flow |
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