Cash flow

By | March 11, 2015

Cash Flow – сash that is generated over a period of time by an asset, group of assets, or business enterprise. Usually used with a qualifying word or phrase.

The cash flow distinguishes between three main types of cash flows:

– operating cash flows (CFO), is/are cash received from profit-generating activities, for example, sales, and cash used in profit-generating activities, such as cash salaries and cash paid to suppliers

– investing cash flows (CFI), is/are cash received from selling non-current assets, so for example, selling old machinery; and financial investments, for example, cash invested in the purchase of machinery and buying financial investments.

– financing cash flows (CFF) is/are the cash received from issuing shares and borrowing, and cash returned to shareholders and lenders