Cash flow (Cashflow)
The money that actually flows into and out of a company.
In short
As of 8 October 2026Cash flow is the money that actually flows into and out of a company over a period. Operating cash flow comes from the ongoing business; after investment, free cash flow remains. Dividends, share buybacks and debt repayment are paid from it. Cash flow is harder to dress up than accounting profit.
Cash flow shows how much real money a company generates over a period. Unlike profit, it excludes pure accounting items such as depreciation. Profit can be shaped by accounting rules; cash flow is much harder to dress up.
The key figure is operating cash flow from the ongoing business. Subtract investment, for example in factories or software, and you get free cash flow. That is what a company uses to pay dividends, fund a share buyback or repay debt.
Example: operating cash flow 3 billion euros, investment 1 billion euros. Free cash flow is 2 billion euros. If the company pays 2.5 billion euros in dividends, the money from the business is not enough. More in the chapter on dividends.
Related terms
As of 8 October 2026 · Educational content, not investment or tax advice.