cash flow

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cash flow,

n the reported net income of a corporation plus amounts charged off for depreciation, depletion, amortization, and extraordinary charges to reserves, which are bookkeeping deductions not paid out in actual dollars and cents. A measurement tool used in recent years to offer a better indication of the ability of a company to pay dividends and finance expansion from self-generated cash than the conventional reported net income figure.
References in periodicals archive ?
The statement of cash flows has been a required part of annual financial statements for more than two years.
The proposed credit agreement requires that the Borrower use excess cash flow to prepay the first lien term loan.
7, Using Cash Flow Information and Present Value in Accounting Measurement, provides a framework for using future cash flows as the basis for accounting measurements.
104, Statement of Cash Flows - Net Reporting of Certain Cash Receipts and Cash Payments and Classification of Cash Flows from Hedging Transactions, permits banks, savings institutions and credit unions to report in a cash flow statement net cash receipts and payments for deposits placed and withdrawn, time deposits accepted and repaid, and loans made and collected.
Free cash flow is more comparable to net income than operating cash flows because net income includes a subtraction for depreciation charges.
We arrogantly determined that discounted cash flow didn't make any sense in valuing a company in this new world.
Such portfolio models facilitate a variety of analyses, including projection of aggregate expected cash flows, calculation of a portfolio value, reserve development and analysis of reinsurance arrangements.
The decrease in cash flow and investment return may result in disgruntled investors.
At the second stage, the determination of net future cash flows calls for an estimate of the future cash inflows and outflows--undiscounted.
A more powerful approach is to link cash flows to operating variables, which allows us to calculate stock valuations directly from an operating executive's point of view.
As diagram B shows, the best explanation is the present value mechanism based on the time value theory of money concept from economics, which asserts that cash flows are more valuable when they occur more quickly, are larger and are more certain.
Dividends and other cash flows (after withholding and other transfer taxes) from the operating companies to the holding company should exceed US$450 million annually over the next several years.