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Cash flow

UK //kæʃ floʊ// US //kæʃ floʊ// Pronunciation

Definition

The total amount of money moving in and out of a business over time.

Listen to definition

In simple words: The money coming in and going out of a business.

Examples

• The company's cash flow improved significantly over the last quarter.
• Managing cash flow is crucial for a business's survival.
• They analyzed their cash flow to identify areas for improvement.
• A negative cash flow can lead to financial difficulties.
• The business relies on accurate cash flow projections to make decisions.
• Investors closely examine cash flow statements before making investments.
• Her cash flow forecasts helped secure funding from investors.
• Unexpected expenses can disrupt cash flow management strategies.

Usage notes

Commonly used in business contexts; appropriate for discussions about financial health and budgeting. Avoid in casual conversations.

Grammar pattern

standalone phrase

Memory hint

Think of cash flowing like a river; it comes and goes.

Collocations

• positive cash flow
• negative cash flow
• cash flow statement
• cash flow management
• cash flow projections

Synonyms

• financial flow
• cash management
• liquidity
• monetary flow
• funds movement

Common mistakes

• Confused with 'cash inflow' and 'cash outflow'.
• Used incorrectly as a verb.
• Misunderstood as a synonym for profit.