cash flow

In investments, it represents earnings before depreciation, amortization and non-cash charges. Sometimes called cash earnings. Cash flow from operations (called funds from operations) by real estate and other investment trusts is important because it indicates the ability to pay dividends.

A phrase describing the positive or negative cash position of a business as it relates to revenue and expenditures.

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The net spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. When expenses exceed income, a negative cash flow results .

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Net income plus depreciation and other non-cash charges. A strong cash flow is important for covering interest payments, particularly for highly leveraged companies.

A measure of an organization's liquidity that compares cash inflows and outflows. Often shown by adding noncash expenses to net income.