Examples of cash flow in a Sentence
We were able to maintain a steady cash flow.
The company is looking at new ways to generate cash flow.
Recent Examples of cash flow from the Web
Manske recommended the cash flow analysis of airport revenue targeted for funding of the project.
Besides now being protected by a top-echelon tackle, Wilson improved his cash flow as a result of the trade.
The machinery's expensive; finding seasonal labor is usually dependent on being able to provide housing, which Field and Okamoto don't have; and cash flow is tight during the winter months.
My cash flow depended on workflow, which sent my stress levels through the roof.
Accelerated cash flow allows media companies to scale their growth.
Hartford leaders are preparing to confront cash flow issues in November and December, with shortfalls of $7 million and $39.2 million, respectively.
The tower’s cash flow is enough to cover only about half of the debt payments on the building, down from 66 percent last year.
The cash flow can be highly unpredictable, according to Nanalyze.com, an investment forum.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'cash flow.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of cash flow
Financial Definition of CASH FLOW
What It Is
How It Works
As an investor, you buy a dividend-paying stock. You purchase the stock for $10 and the company pays you a $0.50 dividend each year. $0.50 is cash flow to you. You have valued the stock at $10 based on the stream of annual cash flows you receive each year. If the dividend drops to $0.25, the stock will be worth less to you, and if the dividend increases to $0.75, the stock will be worth more.
On a company level, assume a business had a good year and was able to increase the amount of cash flow it generated. It made more than it paid out. The company can either keep the cash to reinvest in future business prospects, or it can distribute the cash to its investors. Anyone who wants to put a price on the company as a whole will see the cash flow it generates and assign a value based on those cash flows.
A Cash Flow Statement is required to be filed with the SEC by every publicly-traded company. By examining it, an investor can track the sources of cash and the uses of cash throughout the covered time period.
Why It Matters
The value of any asset can be determined in three steps: 1) Estimate the future cash flows the asset will generate for you; 2) Pick an appropriate discount rate to account for the risk you're assuming by investing in the asset; and 3) Calculate the present value of the cash flows from #1 by discounting them to today's dollars using #2.
It is important to note that having temporary negative cash flow is not always a bad thing. If a company is spending more cash than it earns because it is building a more efficient manufacturing plant, for example, the investment should pay off later when the plant generates products that are turned into cash. On the other hand, if a company has negative cash flow because it's overpaid for acquisitions or made other poor investments, then the long-term benefits may never materialize.
CASH FLOW Defined for English Language Learners
Definition of cash flow for English Language Learners
: the movement of money in and out of a business
Seen and Heard
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