GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Cash Flow


Synonyms:earnings, income, profit, revenue
Filed Under: financial-banking, investments, mortgages, taxation
Tags: banking, investment, mortgage, taxes
 

Definition of cash flow

cash flow
1. The amount of money (after expenses are subtracted) that is generated by an investment or a business during a specific time period. One measure of cash flow is earnings before interest, taxes, depreciation, and amortization. Cash flow is often considered to be a company's most important financial statistic because money drives business.

Related Terms and Acronyms:

  • accounting period (AP)   The time period used in a set of accounting books or financial statements, often 12 months.
  • financing expenses   Expenses sustained from interest payments, financing, and dividends to shareholders.
  • household income (HHI)   The total income of all members of a household.
  • income statement   Also known as the profit and loss statement or P&L, enables you to calculate your company's pre-tax profits by subtracting total expenses from total revenues.
  • loss   When expenses are larger than revenues.
  • net cash flow (NCF)   Incremental after-tax income plus depreciation expense resulting from investment.
  • operating cash flow (OCF)   The money a company generates from its business operations. This revenue excludes costs from certain investments.
  • retained earnings   All of the profits or losses accumulated from prior years and from the present year's income statement, minus dividends paid to you.
  • revenue   Money earned by a company from its business activities.
  • royalty income   Payment for the use and exploitation of certain kinds of property, such as artistic or literary works, patents and mineral rights.

More Related Terms and Acronyms

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