This situation can spell financial trouble, of course, but it need not always be negative in the colloquial sense, explains Karanjit Singh Kochar, Manager, Major Accounts, BDC. When this happens, it means there is more cash leaving the company than there is cash coming in. Since a company’s net cash flow is a sum of three different positive or negative figures, cash flow can turn out to be negative. It should not be confused with net cash flow, which is listed on a cash flow statement, and refers to the sum of the three categories above.

That’s the cash that a company has left over after accounting for operating expenses and capital expenditures. This category includes all flows related to raising cash as well as paying back debts to investors and creditors.Īlthough not usually listed on a cash flow statement, one could add a fourth type: free cash flow. This is the money coming in or going out of the company that is related to the purchase and sale of long-term investments such as property, buildings and equipment. This is the money generated, spent or lost in the course of a company's main business activities. Normally, you will find three types of cash flow on a cash flow statement:

Simply put, cash flow refers to the amount of cash that goes in and out of a company’s coffers during a given period of time. Growth & Transition Capital financing solutions Kauffman Fellows Program Partial Scholarship Venture Capital Catalyst Initiative (VCCI) Industrial, Clean and Energy Technology (ICE) Venture Fund

Managing cash flows