Cash Flow
/ˈkæʃ floʊ/
Definitions
- (n.) The net amount of cash and cash-equivalents moving into and out of a business, reflecting liquidity and financial health.
The company's cash flow improved significantly after the new product launch.
- (n.) The movement of funds in transactions relevant to legal-financial arrangements, such as loan repayments or settlement of obligations.
The agreement stipulated how cash flow generated by the project would be distributed among investors.
Forms
- cash flows
Related terms
See also
Commentary
In legal contexts, distinguishing cash flow from accounting profits is critical when drafting financing agreements or structuring transactions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.