cash flow

Meaning

The total amount of money being transferred into and out of a business, which affects its liquidity. Positive cash flow means more money is coming in than going out, while negative cash flow means the opposite. It is vital for covering daily operational costs.

Examples

• We are offering a discount for early payment to improve our cash flow.

  We are offering a discount for early payment to improve our cash flow.

• The company is profitable on paper, but it is suffering from poor cash flow.

  The company is profitable on paper, but it is suffering from poor cash flow.

• We need to prepare a cash flow forecast for the upcoming board meeting.

  We need to prepare a cash flow forecast for the upcoming board meeting.

• Delayed payments from clients are starting to squeeze our cash flow.

  Delayed payments from clients are starting to squeeze our cash flow.

• Maintaining a positive cash flow is the biggest challenge for new startups.

  Maintaining a positive cash flow is the biggest challenge for new startups.

Common Mistakes

• ✗ The cash flow of our company is very high.

  ✓ The cash flow of our company is very strong.

  In business English, we describe cash flow as 'strong', 'healthy', 'positive', or 'poor', rather than 'high' or 'low'.

• ✗ We need to increase our cash flowing.

  ✓ We need to improve our cash flow.

  'Cash flow' is a compound noun. Do not use the gerund 'flowing' as a noun in this context.

Related Expressions

Practice

• Even profitable businesses can fail if they run out of cash due to poor ___.

  💡 The movement of money in and out of a company

  Show answer

  cash flow

• Our bank requested a six-month ___ forecast before approving the business loan.

  💡 Prediction of incoming and outgoing money

  Show answer

  cash flow