The movement of cash in or out of a business, a project or a financial instrument in a particular period under review.
The cash flow for a given period may differ from the profit or loss for the same period because of:
- Items in cash flow which are not part of profit or loss. For example capital expenditure or the collection of trade debtors arising and recognised in prior periods; and
- Items in profit or loss which are not cash flows, such as depreciation, amortisation, or making accruals.
Cash flow is sometimes written cashflow.
- Cash conversion cycle
- Free cash flow
- Incremental cash flows