Net Cash Flow Calculator

What is Net Cash Flow?

Net Cash Flow refers to the overall cash movement into or out of business during a specific period. It is a crucial financial metric that indicates the net change in a company’s cash position resulting from its operational, investing, and financing activities.

Net Cash Flow measures the cash generated or used by a business, providing valuable insights into its financial health and sustainability. It reflects the company’s ability to generate sufficient cash to cover operational expenses, invest in growth opportunities, repay debts, or distribute dividends to shareholders.

By analyzing Net Cash Flow, stakeholders can assess the effectiveness of a company’s cash management and its capacity to meet its financial obligations. A positive net cash flow suggests that a business generates more cash than it is spending, indicating a healthy financial state and potential for growth.

A negative net cash flow indicates that a company spends more cash than it generates. This situation may raise concerns about the business’s ability to sustain its current operations or meet its financial obligations.