Practical Law Glossary Item 4-382-3314 (Approx. 3 pages)
Glossary
Cash Flow
The amount of actual cash generated by a company or an investment over a given period. It can be calculated by adding non-cash charges to net income after taxes. Cash flow is often considered one of the most important financial statistics of a company.
A company's cash flow is reported on its cash flow statement, also called the statement of cash flows or statement of changes in financial position. The cash flow statement shows:
The cash that flowed in and out of the company during a period, typically for a quarter or fiscal year.