cash flow: meaning, definition, pronunciation and examples
C1Formal (Business/Finance)
Quick answer
What does “cash flow” mean?
The movement of money into and out of a business or project.
Audio
Pronunciation
Definition
Meaning and Definition
The movement of money into and out of a business or project; the net amount of cash being transferred.
The pattern and timing of cash inflows and outflows; a measure of a company's financial health indicating its ability to pay bills and fund operations.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning. The term is identical in spelling and core usage. Potential minor differences in associated regulatory frameworks (e.g., GAAP vs. IFRS) but not in the term itself.
Connotations
Identical in both varieties. Strongly associated with corporate finance, accounting, and business management.
Frequency
Equally frequent and standard in both UK and US business/ financial contexts.
Grammar
How to Use “cash flow” in a Sentence
Noun + verb: Cash flow improved.Verb + noun: to generate cash flowAdjective + noun: positive cash flowPreposition + noun: We have a problem with cash flow.Vocabulary
Collocations
Examples
Examples of “cash flow” in a Sentence
verb
British English
- The new invoice system should help us cash-flow the project more effectively.
- They are struggling to cash-flow their expansion.
American English
- We need to carefully cash-flow this acquisition.
- The model shows how we will cash-flow the startup for the first 18 months.
adjective
British English
- We conducted a cash-flow analysis.
- The cash-flow forecast looks worrying.
American English
- She prepared the cash-flow statement.
- They are experiencing cash-flow problems.
Usage
Meaning in Context
Business
Essential term. 'The board reviews the cash flow statement every quarter.'
Academic
Used in finance, economics, and management studies. 'The study correlates R&D investment with long-term cash flow volatility.'
Everyday
Limited to personal finance analogy. 'My cash flow is negative until payday.'
Technical
Precise accounting/finance term with subtypes: operating cash flow, investing cash flow, financing cash flow.
Vocabulary
Synonyms of “cash flow”
Strong
Neutral
Weak
Vocabulary
Antonyms of “cash flow”
Watch out
Common Mistakes When Using “cash flow”
- Using 'cashflow' as one word (standard spelling is two words: cash flow).
- Confusing 'cash flow' with 'profit' or 'revenue'.
- Incorrect preposition: 'on the cash flow' instead of 'in the cash flow' or 'with cash flow'.
FAQ
Frequently Asked Questions
No. Profit is revenue minus expenses on an accrual accounting basis. Cash flow is the actual movement of money in and out. A company can be profitable but have negative cash flow (e.g., if customers haven't paid yet).
Yes, in business jargon, particularly in US and UK English. It means to finance or provide the cash needed for something as it happens (e.g., 'to cash-flow a project').
It is a key financial statement that shows the sources and uses of a company's cash over a specific period, categorised into operating, investing, and financing activities.
The standard spelling in most dictionaries and formal business writing is two words: 'cash flow'. 'Cashflow' is sometimes seen but is less formal.
The movement of money into and out of a business or project.
Cash flow is usually formal (business/finance) in register.
Cash flow: in British English it is pronounced /ˈkæʃ ˌfləʊ/, and in American English it is pronounced /ˈkæʃ ˌfloʊ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Cash is king (related concept emphasising the importance of cash/liquidity)”
- “Cash flow is the lifeblood of a business.”
Learning
Memory Aids
Mnemonic
Imagine a river of coins (cash) flowing into and out of a company's vault. The 'flow' tells you if the vault is filling up or draining.
Conceptual Metaphor
CASH FLOW IS A LIQUID / A CURRENT (e.g., steady flow, blocked, dries up, inject liquidity). BUSINESS IS A BODY (cash flow as its lifeblood).
Practice
Quiz
What does a 'positive cash flow' primarily indicate?