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Finance & Banking vocabulary · Corporate Finance

Cash flow

Meaning in finance & banking, with examples

nounCore term

In finance & banking, cash flow means: The movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out.

In Turkish: nakit akışı

How it is used

One of the first things credit analysts check, because loans are repaid from cash, not from profit. People speak of positive or negative cash flow, cash flow problems and a cash flow forecast; the cash flow statement reports it.

Example sentences

  1. The company is profitable, but its cash flow is weak because customers pay late.

  2. We asked the client for a 12-month cash flow forecast.

Common collocations

  • positive cash flow
  • cash flow forecast
  • cash flow statement
  • free cash flow
  • cash flow problems
  • working capitalThe money a business has available for its daily operations, calculated as current assets minus current liabilities.
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.
  • income statementA financial statement showing a company's revenue, costs and profit or loss over a period, such as a quarter or a year.
  • capitalMoney and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.