# Cash flow (also usually referred to in German as Geldfluss, Kapitalfluss and Zahlungsstrom)

- Canonical URL: https://www.gerhardmerk.de/cash-flow-also-usually-referred-to-in-german-as-geldfluss-kapitalfluss-and-zahlungsstrom
- Post ID: 589036
- Modified: 2023-07-25T21:00:49+00:00
- Language: en

## Definition

Unless explicitly defined otherwise - the net inflow of money, more specifically revenue from sales and other current activities less all costs, - into a company - within a given economic period. - Cash flow is considered an important indicator for assessing the financial situation of a company, especially in the context of rating. Its precise calculation, however, raises a number of difficulties, such as accrual or possible changes in inventories. - On the other hand, cash flow is normally considered to be a more reliable measure of a company's earning power than profit, taking into account all the circumstances of the company, the industry or the market. This is because the determination of profit is valuation-dependent, for example through overly cautious depreciation, provisions, etc. Cash flow, on the other hand, is linked to payments and not to valuations. - A distinction is often made between - operating cash flow: inflow from operating activities, - investing cash flow: inflow from investments and - financing cash flow: inflow from financing activities. - See EBITDA, free cash flow, cash flow, cash cow, profit, operating, cash flow statement, core earnings, cost efficiency, price/cash flow ratio, timeline, interest rate risk. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0