Calculate your net cash flow by combining cash from operating, investing, and financing activities.
Google AdSense Banner
This area will contain advertisements after approval.
Google AdSense Banner
This area will contain advertisements after approval.
Net Cash Flow = Operating Cash Flow + Investing Cash Flow + Financing Cash Flow, the three sections of a standard cash flow statement. Enter outflows (like equipment purchases or debt repayments) as negative numbers.
For example, 30,000 from operations, -20,000 from investing (e.g. buying equipment), and 5,000 from financing (e.g. a loan draw) nets to 15,000 in overall cash flow.
Operating cash flow comes from core business activities. Investing cash flow reflects buying or selling long-term assets. Financing cash flow reflects debt, equity, and dividend activity. Looking at all three separately, not just the net total, shows where cash is actually coming from and going.
Forgetting to enter outflows as negative numbers, mixing signs makes the net total meaningless rather than just directionally off.
Focusing only on the net total instead of the three components, as the FAQ notes, positive overall cash flow propped up entirely by financing (debt) while operations bleed cash is a very different story than positive operating cash flow.
Confusing net cash flow with net profit, a profitable business on paper (accrual accounting) can still have negative cash flow if customers pay slowly or inventory ties up cash.
Yes. Enter cash going out (equipment purchases, debt repayments, dividends paid) as negative numbers, and cash coming in as positive numbers, matching how these figures appear on a standard cash flow statement.
Not necessarily. A company could show positive net cash flow simply by taking on debt (financing activity) while its core operations lose cash. It's worth checking each of the three components, not just the total.
Working Capital Calculator
Calculate working capital and current ratio from current assets and liabilities.
Business Valuation Calculator
Estimate a business's value using the earnings-multiple method.
Google AdSense Banner
This area will contain advertisements after approval.