netkassavirran

Netkassavirran, known in English as net cash flow, is a financial metric that represents the net amount of cash a company receives or uses over a specified period. It is derived from the cash flow statement and reflects the aggregate of cash flows from operating activities, investing activities, and financing activities.

A positive net cash flow indicates that total cash inflows exceed cash outflows during the period, suggesting improving liquidity and the ability to fund operations, growth investments, or debt obligations from internal sources. A negative net cash flow implies the opposite, which may necessitate external financing or asset sales to meet cash needs.

Net cash flow can be presented using two methods. The direct method lists cash receipts and payments, providing a straightforward view of operating cash inflows and outflows. The indirect method starts with net income and adjusts for non-cash items and changes in working capital to arrive at cash provided by operating activities; this operating figure is then combined with cash flows from investing and financing activities to yield the total net cash flow for the period.

Interpretation should consider that net cash flow differs from profitability, such as net income. It can be volatile due to seasonality, capital expenditure, and financing activities. It is also influenced by accounting policies and currency movements. Analysts often compare net cash flow with free cash flow and debt levels to assess liquidity, financial flexibility, and long-term viability.