Financial Terms / cash flow Cash flow is the movement of money in and out of a company, as reported by the cash flow statement. It's a key indicator of a company's financial health.

## Formula

``Cash Flow = Total Cash Inflow - Total Cash Outflow``

## How do I calculate the cash flow?

```Calculating cash flow can be done by using a cash flow statement formula. This formula will calculate the cash outflow and inflow. It is a cash accounting formula and can be used with programs such as Sourcetable. To calculate cash flow, you need to subtract the total cash outflow from the total cash inflow. This can be expressed mathematically as:

`Cash Flow = Total Cash Inflow - Total Cash Outflow````

## What is a cash flow statement?

`A cash flow statement is a financial document that reports on a company's sources and expenditures of cash over a specified time period.`

## How is a cash flow statement used?

`A cash flow statement is used to help assess the company's financial health and stability, as well as to better understand their ability to generate cash, pay debts, and reinvest in the business.`

## What information does a cash flow statement provide?

`A cash flow statement provides information about cash generated from operations, investments, and financing activities. It also provides information about cash used to purchase assets or pay liabilities.`

## Key Points

How do I calculate cash flow?
`Cash Flow = Total Cash Inflow - Total Cash Outflow`
Cash Flow is the Movement of Money
Cash flow is the movement of money in and out of a company over a period of time. It is important to track these movements of cash as they can help inform decisions about how to best allocate resources.
Cash Flow Statement
The cash flow statement is a financial statement that reports on the sources and uses of cash by a company. It is important to understand the statement in order to gauge the flow of money within the company.
Importance of Cash Flow Statement
The cash flow statement is an essential tool for understanding the financial health of a business. Knowing the sources and uses of cash can help inform decisions about how to best manage the companyâ€™s finances.