cashflow

Vocabulary Word

Definition

Cashflow is the net amount of cash moving in and out of a business during a set period. It is an essential measure of a company's financial health. Without cashflow, a business can't pay bills, employees, or invest in its future.

Examples in Different Contexts

In tech startups, 'cashflow' is vital for sustaining operations and fueling growth. A startup founder might stress, 'Managing our cashflow efficiently is essential for our long-term viability and success in the market.'

Practice Scenarios

Tech

Scenario:

The team is eager about launching our new application. Will our current financial situation cope with the extra costs involved?

Response:

Our current cashflow is a bit strained due to recent development costs. We may need to reassess the launch timing.

Accounting

Scenario:

The budget review meeting is approaching fast. We need an update on our financial performance in the last quarter.

Response:

Our last quarter cashflow reveals effective cost control. We're in a robust financial position.