1. The movement of cash through a business, as a measure of profitability or liquidity.
2. The cash generated from a business or transaction.
3. Cash receipts minus cash disbursements for a given period. — Sometimes written cashflow.
cash flow per common share. The cash flow from operations minus preferred stock dividends, divided by the number of outstanding common shares.
discounted cash flow. A method of evaluating a capital investment by comparing its projected income and costs with its current value. • Discounted cash flow is used to determine the value of a company by calculating the present value of its future cash flows. In theory, the value of the corporation’s assets equals the present value of the expected cash flow generated by those assets.
— Also termed discounted-cash-flow method. — Abbr. DCF; DCF method.
incremental cash flow. The net increase in cash flow attributable to a particular capital investment.
negative cash flow. A financial situation in which cash outflow exceeds cash inflow. See INSOLVENCY.
net cash flow. Cash inflow minus cash outflow.
