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

For social enterprises, maintaining healthy 'cashflow' is essential to fund social projects and remain solvent. A social entrepreneur might assert, 'Optimal cashflow management is central to achieving our social objectives while staying financially sustainable.'

Practice Scenarios

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.

Business

Scenario:

Our quarterly report is due next week, and we need to show how well we have performed. How is our financial position?

Response:

Our cashflow statement looks robust; we've had a good turnover. It will impress the stakeholders.