A measure of a company's financial health. Equals cash receipts minus cash payments over a given period of time; or equivalently, net profit plus amounts charged off for depreciation, depletion, and amortization. see also discounted cash flow analysis, financing flows, free cash flow, investment flows, liability swap, net present value, operating cash flows, payout period, price to cash flow ratio.
Periodic amounts available to an equity investor after deducting all periodic cash payments from rental income.
Bloopers & Blunders: Cash Flow and Value
a measure of how much money comes into and goes out of a household during one year. QFP considers "surplus cash flow" to be dollars not specifically accounted for in living expenses, savings, etc.
The process of money coming in from various sources (for example, from income or loans), and being spent for various purposes.
The pattern of cash income and cash expenditure during a period of time.
The amount of cash generated by a company in an accounting period. Contrary to popular belief, the most important number that can be extracted from financial statements is not a company's profitability, but its cash flow. A lot of companies can be profit rich, but cash poor resulting in operational problems.
The flow of liquid assets in and out of an organization over a period of time, where inflow is normally composed of cash sales receipts and outflow is composed of payments and cash expenditures. Net cash flow is the difference when subtracting cash outflow from cash inflow.
The amount of cash that flows in and out of a business. The company is 'cash positive' if more money comes in, and ' cash negative' if more cash goes out.
How much money is coming into your business and how much is going out.
CF - Actual cash amounts which are receipts (inflow) and disbursements (outflow) (1.10).
Cash flow is a measure of changes in a company's cash account during an accounting period (usually a month, quarter, or year), specifically its cash income minus the cash payments it makes. You can calculate whether your cash flow is positive or negative the same way you would a company's: Subtract the money you receive (from wages, tips, investments and other income) from the money you spend on expenses (such as housing, utilities, transportation, and other costs). If there's money left over, your cash flow is positive. If you spend more than you have coming in, it's negative.
The amount of cash a company actually receives or pays. There are several measures in common use.... more on: Cash flow
An index for assessing the financial and earning power of a company. The cash flow provides information about the supply of cash and cash equivalents generated during a period. In accordance with IAS 7 cashflow is broken down into cash flow from business activities (gross cash flow), cash flow from operating activities, investing activities and financing activities.
A company`s annual profits plus depreciation.
Earnings before depreciation, amortization, and noncash charges.
In investment property, the actual cash the investor will receive after deduction of operating expenses and debt service (loan payment) from gross income.
The increase or decrease of cash resources, permitting money to be available for working capital, investments, and other expenses.
Income before extraordinary items plus non-cash revenues (such as equity income). Cash flow shows how much money is available for such things as the purchase of fixed assets, retirement of debt and payment of dividends.
A comparison of the money going into and out of a company. If a business has a positive cash flow, it is operating at a profit. A negative cash flow means a company is operating at a loss.
In relation to company accounts, reported net income plus amounts charged off for depreciation, amortisation, and extraordinary charges to reserves, which are book-keeping deductions and not paid out in actual dollars and cents.
Inflows and outflows of cash and cash equivalents.
EBITDA is a good definition of cash flow, as is "Operating Cash Flow From Operations", as reported in the Cash Flow Statement. The total cash receipts (inflow) or cash payments (outflow) arising from a given asset, or group of assets, for a given period. Net cash flow is the inflows less the outflows.
"Reported net income of a company plus amounts charged for accounts such as depreciation, depletion, amortization, extraordinary charges to reserves, which are bookkeeping deductions and are not paid out in actual Egyptian pounds. "
is calculated by subtracting preferred dividends, plus non-cash items from net income.
The difference between your incoming cash and your outgoing cash.
The flow of cash through a business or household. ... more
Measure of the actual cash generated by a business rather than the accounting profit. In the UK this is typically pre-tax profit plus depreciation, amortisation and other non-cash charges less other cash expenditure incurred by a business such as tax and purchases of fixed assets.
Cash receipts less disbursements. The amount of cash being received and expended by a business, which is often analyzed into its various components. A cash-flow projection (or cash budget) sets out all the expected payments and receipts in a given period. This is different from the projected profit and loss account and, in times of cash shortage, may be more important. It is on the basis of the cash-flow projection that managers arrange for employees and creditors to be paid at appropriate times.
The movement of money into and out of your business.
Cash flow shows the movement of cash into and out of a business. While profit is calculated by subtracting expenses from sales, cash flow is calculated by subtracting cash paid by a company from cash received. A cash flow statement is divided into three parts -- operating cash flow, investing cash flow and cash flow related to financing. Expanding businesses tend to record a positive financing cash flow because they actively make capital investment using funds raised from outside sources such as loans and capital increases. In contrast, companies that are restructuring and striving to reduce interest-bearing debt tend to record a negative financing cash flow.
Cash coming in (as income) and cash going out (as expenses). It is the direction of cash flow that determines whether something is income, expense, asset or liability. Cash flow tells the financial story
The pattern, over a specified time period, of the incoming and outgoing values of flows of goods and services in a form equivalent to cash and including transactions conducted through a bank or equivalent financial agency. For a semi-subsistence or quasi-commercial farm, the cash flow should if possible include or note the existence of barter transactions.
A measure that compares your income and your expenses. When more cash comes in than goes out, you have a positive cash flow. Negative cash flow occurs when more cash goes out than comes in. Your ability to qualify or be approved for a loan is determined in part by your cash flow situation.
Important indicator of a company's financial strength. Cash flow presents the balance of all incoming and outgoing funds and the financial surplus from current business activities.
(1) the net cash generated by a firm from ongoing operations, or from financing, such as issuing stock or debt. (2) net income plus noncash charges, such as depreciation.
A measurement of the money going into and coming out of a company. A company with negative cash flow must borrow money to operate its business. A company with positive cash flow has money to spend on research and development, expand operations, and pay dividends to investors. The cash flow statement frequently appears at the end of a financial statement.
A general term that defines cash generated over specific amount of time by an asset, group of assets or business enterprise. In professional context, the term is best utilized with a more specific qualification such as â€œoperatingâ€ or â€œdiscretionaryâ€.
Cash flow is the cash income and expenditure of a business. Literally the way in which cash moves through the business.
The funds generated from the operation of a business, distinct from funds raised by capital subscriptions, asset sales or borrowing.
Cash received less cash paid out, including income taxes paid.
Cash received less cash paid out before any consideration for income taxes.
The spendable cash (income) from an income producing property after deducting all operating expenses and debt service from the gross income.
The sources of funds and the uses of funds for a business during a specified time frame.
Pre-tax profits plus depreciation allowances and other charges.
The net operating income of a property minus its debt service.
Refers to money coming in from a property. The cash flow should be enough to cover the expenses of the property so that it is not negative cash flow.
a) In a larger financial sense, an analysis of all the changes that affect the cash discount during an accounting period. The statement of cash flows included in annual reports analyses all changes affecting cash in the categories of operations, investments, and financing. b) In investments, net income plus depreciation and other non-cash charges. In this sense, it is synonymous with cash earnings. Investors focus on cash flow from operations because of their concern with a firm's ability to pay dividends.
Retained net income plus depreciation and amortization. The term is often misused by the popular press. It does not mean liquidity. A company can be liquid without being profitable. But a positive cash flow requires profits.
The income received on an income-producing property. The cash flow should be enough to cover all expenses insured from the property.
What's left at the end of the month after you've paid all your bills and done all your spending. To find your cash flow, add up all of your expenses for a month and subtract that number from your monthly income. Knowing your cash flow is key to setting a monthly savings goal.
a periodic statement of income and expenses
This is a summary of your company's sources and uses of cash. A cash flow report will show you changes in your cash position over a period of time. (Download a Sample Cash Flow Statement, and visit our Tools Library for more samples.)
A detailed outline of estimates for the receipt of revenue and the payments to be made over a period of time such as six months to a year. The cash-flow projection will highlight periods of cash shortage and potential need for credit
The proceeds obtained over a given period of time by an income producing property, such as rental property.
With reference to a property (or group of properties), the owner's rental revenues from the property less all property operating expenses. The term ignores depreciation and amortization expenses, as well as interest on loans incurred to finance the property. Sometimes referred to as "EBITDA" (Earnings before interest, taxes, depreciation and amortization).
The comparison of benefits and costs over the life of the investment. The most commonly used investment analysis measures are: Payback, Simple ROI, Discounted Payback, Net Present Value (NPV), and Internal Rate of Return (IRR).
(also Discretionary Earnings). Total financial benefit to an owner working in the business enterprise. With the Cash Flow, an owner must pay himself a salary, pay his company's income taxes, pay for any capital improvements (if needed) and set aside funds for unexpected events. Calculated by adding the following expenses back into the net income: Interest Taxes Depreciation Amortization Owners Compensation Owners Fringe Benefits One-Time Expenses
Explains the flow of cash in the entity in relation to funds received from sources and payments out. Effectively the movement of cash in and out.
This term may have different meanings depending upon who is using the term and in what context. Bankers usually define it as net profits plus all non cash expenses, but it can also be defined as the difference between cash receipts and disbursements over a specified period of time.
The movement of money into and out of a business as it sells products and services and pays expenses.
Consolidated net result of the Group + depreciation, amortization and impairment of assets. This definition differs from that applied in the consolidated cash flow statement.
All cash (and cash equivalent) that flows to the benefit of the Owner including the net profit declared on tax returns.
Cash Flow is the movement of money into and out of a company. When more comes in than goes out, it is said to be a positive cash flow. A negative cash flow is when more goes out than comes in.
Money coming to an individual or business less money being paid out during a given period.
Predictable cash income to sustain operations; in capital campaigns or whenever pledges are secured, anticipation of annual cash receipts resulting from payments on pledges.
The amount of cash derived from an investment. Cash flows can vcome from operation, disposition, or refinancing of an investment.
Month by month summary of cash inflows and outflows of a business
is equal to Cash Inflow minus Cash Outflow.
The surplus left over out of the rents after paying out all operating expenses and mortgage payments.
The amount of money flowing into and out of a plan during a period of time.
Income from all sources. Net income for a stated period plus all deductions that are not paid out in actual cash such as depreciation, deferred income taxes, and amortization.
Actual movement of cash within a business. The money coming in and the money going out constitute the flow of cash that determines the future of a business.
in general terms, money flowing in from sales minus money flowing out for expenses. A positive cash flow is essential for a business to survive.
The excess of income over and above expenses
Money that isn't tied up and is available for use. Typically a measure of a business' ability to meet lease obligations. Usually figured by adding the business net income to its depreciation expense for a certain period of time, and subtracting the current portion of long-term debt. The remainder of this formula is the available cash to assist new lease obligations.
The movement of cash in and out of a business. Profitable businesses can still fail if customers pay more slowly than the business pays its suppliers, so cash flow should always be measured.
Pattern of income and expenditure and the resulting availability of cash.
Accounting definitions vary somewhat, but one calculation is net income plus depreciation and amortization, which are noncash charges against earnings.
The net operating income minus the total of all debt service payments. (See definition of "net operating income" below.)
Flow of cash received and paid.
Income created by a successful investment.
The movement and timing of money, in and out of the business. In addition to the balance sheet and the income statement, you may want to report the flow of cash through your business. Your company could be profitable but "cash poor" and unable to pay your bills. Not good! A cash flow statement helps keep you aware of how much cash came and went for any period of time. A cash flow projection would be an educated guess at what the cash flow situation will be for the future - you could use this for your budget. Suppose you want to buy a new truck with cash. But that purchase will empty the bank account and leave you without any cash for payroll. For cash flow reasons, you might choose to buy a truck on payments instead.
Cash flow is after tax net income plus depreciation plus other noncash charges.
The relationship between household income and expenses. For example, households that spend more than they earn have negative cash flow.
Cash Available form an investment's gross income after paying all expenses and income tax owed.
Cash available from an investment's gross income after paying all expenses, except income taxes.
measure of how well a business manages its inflows and outflows of cash for a given period of time. It shows the borrower's ability to repay the loan.
Sales surplus, financial surplus: is interpreted as net inflow of liquid funds from sales activity and other current operations within a defined period of time. Cash flow is a common, expressive key figure used to evaluate the financial situation of a company and its stock value. The cash flow is deduced from a company's annual accounts.
This is a measure of a company's financial health. It represents cash receipts minus cash payments over a given period of time. A summary of a company's cash flow may be seen in the Cash Flow Statements.
Denotes the inflow of liquid funds within a certain period and facilitates assessment of internal financing.
Balance from the inflow and outflow of cash and cash equivalents over the course of the fiscal year. A distinction is made between net cash provided by operating activities, net cash used in investing activities and net cash used in financing activities. The total of all three cash flows is the free cash flow; this is the increase in the level of cash and cash equivalents at the end of the fiscal year.
the total of net income plus non-cash charges (depreciation, amortization, and depletion) minus preferred dividends (if any). See Free Cash Flow.
Represents a company’s cash account during an accounting period. Positive cash flow means more cash is coming in than going out. Negative cash flow is just the opposite.
The net income after deducting from the gross income all operating and fixed expenses including both interest and principal paid on loans.
The movement of cash into and out of the business
The amount of money (after expenses are subtracted) that is generated by an investment or a business during a specific time period. One measure of cash flow is earnings before interest, taxes, depreciation, and amortization. Cash flow is often considered to be a company's most important financial statistic because money drives business.
The amount of cash received from an investment, occupation or financial resource (such as an income stream) which is then available to the recipient for other purposes.
The actual movement of cash within a business: cash inflow minus cash outflow. A term used to designate the reported net income of a corporation plus amounts charged off for depreciation, depletion, amortization, and extraordinary charges to reserves, which are bookkeeping deductions and not actually paid out in cash. Used to offer a better indication of the ability of a firm to meet its own obligations and to pay dividends than the conventional net income figure.
Cash generated by a company's operations. It is either reinvested or distributed to shareholders (dividends). Cash flow corresponds roughly to after-tax earnings plus depreciation and amortization expenses and minority interests.
Generally, is the net amount of money received by an individual or company in a certain period.
This term gets used rather vaguely. Operating cash flow is the cash generated by the business after changes in working capital. Free cash flow is this figure less what you have to pay the taxman and the bank for the money you borrowed. Net cash flow is how much the piggy bank has changed at the end of the year.
The amount of cash generated from income-producing property or investments after all operating expenses and loan payments have been made.
The difference between a business's cash receipts and its cash payments over a certain period of time.
Difference between a company's operating income and expenses before deduction of depreciation and provisions.
The periodic income or loss arising from the operation and ultimate resale of an income producing property. The cash flow could further be classified as either before or after tax cash flow and could also reflect the impact of financing.
Effective gross income minus operating expenses and debt service.
The cash flow report states where money came from and went to over a particular period of time. A cash flow projection indicates when cash inflows and outflows are expected to occur in the foreseeable future.
the amount of actual cash generated by business operations, which usually differs from profits shown.
A measure of the fiscal strength of a business. The net of the incoming and outgoing of cash during an accounting period. Does not account for depreciation or write-offs which do not involve an actual cash outlay.
The increase or decrease in cash from business operations.
The amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment, maintenance, utilities, etc).
Measure of the actual cash generated by a business rather than the accounting profit. In the UK typically pre-tax profit plus depreciation, amortisation and other non-cash charges. In the US, net income with depreciation charges added back.
Income generated by a rental property. It is determined by subtracting vacancy allowances and collection costs, operating expenses and debt-servicing costs from the property's scheduled gross income.
The amount of money generated by a business less the cash expenses of doing business.
The actual movement of cash within a business; the analysis of how much cash is needed and when that money is required by a business within a period of time.
The flow of cash through a business or household. In business terms, cash flow involves the flow of cash into a company in the form of revenues, and out of the company in the form of expenses.
The owner's spendable income after operating expenses and debt service is deducted
The total funds generated by a farm or firm for covering costs and investment. Farming presents unique cash flow problems when income is generated only when crops are harvested or livestock is ready for market, if crop failures occur or costs rise faster than product prices.
Sum of ordinary net profit plus period depreciation and amortization.
A report which shows the flow of money in and out of the business over a period of time.
The net of the inflow and outflow of cash during an accounting period. Does not account for depreciation or bookkeeping write-offs which do not involve an actual cash outlay.
Incoming cash to the business less the outgoing cash during a given period. Also used to refer to the figure derived from net income plus non-cash items charges off in the accrual accounting process.
The net cash received in any period, taking into account net operating income, debt service, capital expenses, loan proceeds, sale revenues, and any other sources and uses of cash.
A company's net income for a stated period plus any deductions that are not paid out in actual cash, such as depreciation and amortization, deferred income taxes, and minority interest.
Income inflows less expense outflows, including debt service, over a specified period.
The cash receipts and payments of a business. This differs from net income after taxes in that non-cash expenses are not included in a cash flow statement. If more cash comes in than goes out, there is a positive cash flow, while more outgoing cash causes a negative cash flow.
The process of ensuring that funds will be available for planned expenditure at the time the payment is required. Usually done in conjunction with the budget on a monthly basis. While total income may exceed total expenditure, the funds must be available at the time of payment. To avoid a cash flow crisis, it may be necessary to revise the budget or delay expenditure until more income is available.
Ready cash (net income plus set aside cash, as for depreciation).
Cash Flow is the remaining cash after all expenses and debt services are paid. Gross Income (Gross Revenue) 200,000 Less: Losses or bad debts 2,000 Plus: Miscellaneous Income 1,000 Equal: Effective Gross Income 199,000 Less: Operating Expenses 70,000 Less: Replacement Reserve 10,000 Equal: Net Operating Income 119,000 Less: Interest 75,000 Less: Principal Payment 8,250 Equal: Cash Flow 35,750
the measure of actual cash flowing in and out of a business.
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 mo (More)
A measure of cash inflow and outflow from the business. Positive cash flow means more money is coming into the business than is leaving it. Negative cash flow is the converse.
The amount by which the total cash coming into a business from all sources exceeds the total cash going out.
The increase or decrease in a company's cash during a period of time. A cash flow statement shows where the company got the cash and the uses it made of cash.
The cash on hand before taxes, after subtracting a property's debt service from its net operating income (NOI). Another term for cash flow is 'cash on cash'.
A measurement of the money going into and coming out of a company. If a company has negative cash flow, it must borrow money to operate its business. If it has positive cash flow, it has money to spend. The cash-flow statement frequently appears at the end of a financial statement.
The difference between the money flowing into your pocket as income and the money flowing out as expenses. Investments can generate cash flow - either positive or negative
The money accumulated over a given amount of time from an income producing property. The amount of money coming in from the property should be able to cover the cost of the income producing property (mortgage, basic upkeep, etc.).
The amount of cash flowing through an organisation in a given period. A companyâ€™s cash flow is equal to its trading profit plus any depreciation, plus any new money raised through a share issue or a loan during the period.
The money an investment produces after subtracting cash expenses from income.
Undesignated (general) income that is available to pay the mortgage payment after deducting all fixed expenses except debt service expense. Fixed expenses include such items as salaries, benefits, utilities, taxes, insurance and any other non-discretionary continuing expense.
Regular income from property rentals.
in a larger financial sense, an analysis of all the changes that affect the cash account during an accounting period. When more cash comes in than goes out, we speak of a positive cash flow; the opposite is a negative cash flow.
Your income minus expenses.
An accounting presentation showing how much of the cash generated by the business remains after both expenses (including interest) and principal repayment on financing are paid. A projected cash flow statement indicates whether the business will have cash
The amount of cash gained over a period of time from an income-producing property. It should be enough to pay the expenses for that property (mortgage payment , maintenance, utilities, etc.)
Movement of funds through a business
Description of the net income from a property after all expenses of holding and carrying the property are paid.
The net spendable income from an investment, determined by deducting all operating and fixed expenses from gross income. If expenses exceed income, a negative cash flow is the result.
Actual cash the investor will receive after deducting operating expenses and loan expenses from the gross income.
The amount of money remaining from an investment property when all operating costs and loan costs are subtracted from the gross income.
The amount of money you have after you pay all of your cash expenses, loan payments, and taxes. A "positive cash flow" generally means you are increasing your cash on hand or have money in the bank. Cash flow is an indicator of a company's worth.
The net profits or losses of a business plus noncash expenses such as depreciation, amortization, and depletion.
(Flux monétaires) Sum of all cash inflows and outflows.
The process of providing a conduit for money to flow from a commission account, through your bank account, and into someone else's bank account. The purpose of this is to allow you to waylay a small amount (about 10-15%) as Profit. See Profit and Business.
Controlling the flow of cash you collect from customers and other sources before you pay your suppliers and any other creditors.
Measure of financial health. Equals net profits plus amounts charged for depreciation, depletion and amortization over a given period of time.
A measure on an organization's liquidity that compares cash inflows and outflows. Often shown by adding noncash expenses to net income.
The amount of cash a rental property investor receives after deducting operating expenses and loan payments from gross income.
The cash, as opposed to the profit, generated by a business.
The flow of cash in and out of a business. Positive cash flow means having enough cash to meet your operating needs and to pay your bills on time. It is an important sign of a healthy and stable business.
Reported net income of a corporation plus amounts charged off for depreciation, depletion, amortization, and extra-ordinary charges to reserves, which are bookkeeping deductions and not paid out in actual dollars and cents. (See: Amortization, Depreciation)
In investments, it represents earnings before depreciation, amortization and non-cash charges. Sometimes called cash earnings. Cash Flow from operations (called Funds From Operations (FFO) by real estate and other investment trusts, is important because it indicates the ability to pay dividends.
Amount of total payments, interest and occasionally principal received as current income from Treasury and agency securities.
Cash flow corresponds to the accounting measurement of all liquid assets generated by a company's business. The company uses it to cover financial requirements linked to: - its development through tangible investments (construction of new power stations or networks) and external growth, - its commitments, especially in matters of debt repayment and payment of dividends.
a company's cash before investment or financing is included; since financing is not included, it is often a clearer indicator of a company's health than earnings or income.
Net earnings before depreciation, amortization and non-cash charges. Sometimes called cash earnings, cash flow is calculated by adding depreciation to net earnings and subtracting preferred dividends. It is useful for determining how solvent a company is.
Net income plus depreciation and other non-cash charges. A strong cash flow is important for covering interest payments, particularly for highly leveraged companies.
Measure of the actual cash generated by a business rather than the accounting profit. In the UK, typically Pre-tax Profit plus depreciation, movements in working capital, amortisation and other non-cash charges.
Reported net income of a corporation plus amounts charged for depreciation, depletion, amortization, extraordinary charges to reserves, which are bookkeeping deductions and not paid out in actual Riyals. Hence, it is the cash received from investments or generated by a business, within a period of time, less any cash expenditure.
Cash flows in and out of all Companies on a dayâ€‘toâ€‘day basis 'cash in' represents the receipt of monies due from sales of products or services and 'cash out' is payment to suppliers, rentals, salaries and overheads. Where 'cash in' exceeds 'cash out' there is a positive cash flow and where expenses exceed receipt of monies there is a negative cash flow. The monitoring and control of a Company's cash flow is fundamental to its solvency and stability.
Used in the analysis of balance sheets, company operations and shares to assess the financial and earning power of an enterprise. Cash flow (sales or financing surplus) describes the flow of cash and cash equivalents from sales and other sources within a specific period.
The movement of money out of and into a business as goods are bought and sold.
Indicator for the assessment of the financial situation of a company and share valuation. Cash flow is net income plus depreciation and amortization.
Rental income remaining after deducting for operating expenses and debt service.
The cycle of income and expenditures, and the resultant availability of working capital.
The flow of cash through a business. Typically, cash flows into a business in the form of revenue and out of a business in the form of expenses. Cash also flows into a business through the acquisition of debt or equity or the sale of assets and flows out of a business to reduce liabilities or acquire assets.
cash that is generated over a period of time by an asset, group of assets, or business enterprise. It may be used in a general sense to encompass various levels of specifically defined cash flows. When the term is used, it should be supplemented by a qualifier (for example, "discretionary" or "operating") and a definition of exactly what it means in the given valuation context.
Balance of the flows (inflows and outflow) of liquid funds. Serves as an indicator for the assessment of the financial strength of a company, as well as its ability to make dividend payments, debt repayments and investment financing from its own funds. Cash flow is divided into cash flow from operating, investment and financing activities.
Dollars available to business owner from operations of company (business earnings before interest, taxes, depreciation and owners compentsation assuming it's an owner operated business).
Movement of money into and out of a company; actual income received and actual payments made out.
There are many definitions of cash flow. The reader should demand that an explanation of how cash flow was computed accompany the result.
Profit after principal and interest are deducted from net operating income (NOI).
Pre-tax profit plus depreciation allowances and other charges. In the US the term has a precise accounting definition, net income with depreciation charges added back.
Cash flow is a critical measure of a businesses' ability to meet Lease obligations. Cash flow is calculated by adding the businesses' "Net Income" to its "Depreciation Expense" for a particular period (i.e. Month, Quarter, Year), and subtracting the "Current Portion of Long Term Debt". The remainder of this formulation is the available cash to "service" new lease obligations.
The net income of a company before cash deductions such as depreciation, deferred income taxes and amortization are made.
A term that refers to the cash coming in to and out of a business during an accounting period. Examples of the cash that will flow into a business are: cash from operations (i.e. profit with depreciation added back), sale of fixed assets, share issues and borrowings. Examples of cash outflows are: dividends, taxation, capital i.e. payments of loans and capital expenditure.
Reported net income of a corporation plus amounts charged off for depreciation, depletion, amortization, and other non-cash expenses.
The actual cash available to a company after expenses and taxes (Winston,1995).
Cash flow is the direction of money to (or from ) the company. If a firm has positive cash flow, it is making money faster than it spends it. If it has negative cash flow, it is spending money faster than it collects it.
The term cash flow takes on a very important meaning in a CMBS structure. CMBS are securities based upon paying all principal and interest cash flow from a pool of mortgages to certificate holders in a sequential manner. Early prepayments or extended maturities change cash flows and therefore can have a material effect on how some certificates receive their sequential payments. A CMBS cash flow is very unlike the commercial mortgage market wherein the cash flow contract is divided between receipt of principal payments and interest payments.
Key performance indicator in the cash flow statement used to assess the financial and earning capacity of a company. It is calculated as the difference between income (cash earnings, inflow of funds) and expenses (cash expenditures, outflow of funds).
An analysis over a period of time revealing the availability, or lack, of cash. More simply put the difference between cash in (income) vs. cash out (expenses). Since money does not flow in and out at an equal rate, in most businesses, an analysis of cash flow is important, especially of businesses that are cyclical in nature, or subject to external forces.
Reported net income of a corporation plus bookkeeping deductions that are not paid out in actual dollars and cents, including depreciation, depletion, amortization, and extraordinary charges to reserves.
A measure of the inflows and outflows of cash experienced by a company. You can find this information in the company's Statement of Cash Flows.
The revenue remaining after all cash expenses are paid
Generally refers to the difference between cash receipts and disbursements over a specific period of time. (We don't have a cash flow problem -- it flows REALLY WELL!)
Cash remaining on a rental property when the operating expenses and loan payment are deducted from the gross rental.
a measure of cash coming in and out of a business
For an income producing property, the amount of cash derived over a certain period of time. The cash flow should be large enough to pay the expenses of the property (mortgage payment, taxes, maintenance, utilities, etc).
The net income of an income producing property before depreciation or other non-cash expenses are deducted.
Money available from a business' operations to satisfy cash needs. The primary source for monthly payments on a loan.
The amount of cash a company generates and uses during a period, calculated by adding noncash charges (such as depreciation) to the net income after taxes. Cash Flow can be used as an indication of a company's financial strength. It is also sometimes referred to as the "money value" of trades in a stock during a trading day. Cash Dividend Money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. All dividends must be declared by the board of directors, and are taxable income to the recipients.
Any movement of cash into or out of a company. A cash inflow is a source of funds and a cash outflow is a use of funds.
The income received during a specified period on rents or other fees, gross operating income, or the disposition proceeds of the investment at the point of sale
Amount of money flowing through an entity in a given period. Gross cash flow equals profits after tax plus depreciation, new cash flow equals refined earnings plus depreciation.
Cash income less cash payments for a given period. Individuals whose assets exceed their liabilities (claims against the assets) may still get into financial difficulty if they don’t have enough cash to meet their current obligations.
Cash resulting from sales minus operating expenses excluding depreciation
Represents earnings before non-cash charges such as depreciation and amortization.
The amount of cash derived over a given period of time from an income producing property, such as a rental house, after all expenses of holding and carrying the property are paid. Theoretically, the cash flow should be large enough to pay all property expenses including mortgages, taxes, etc. back
The income generated by a property after deduction of the vacancy allowances and collection costs, operating expenses and debt-servicing costs from the property's scheduled gross income.
The net dollar amount of revenues from a business or investment (such as rental property). This is generally calculated as the total revenue collected minus expenses. A negative cash flow occurs when expenses exceed the income generated.
Actual changes in cash as opposed to accounting revenues and expenses. To Top
Cash flow is an accounting term that refers to the amounts of cash being received and spent by a business during a defined period of time, sometimes tied to a specific project.