Pronunciation: [kˈaʃflə͡ʊ] (IPA) 
The word "cashflow" is spelled with a 'c' and 'h' at the beginning, followed by 'a' and 's', and ending with 'h' and 'f'. It is pronounced as /ˈkæʃfloʊ/. The 'c' is pronounced as a hard sound, like in the word 'cat'. The 'a' is pronounced as a short vowel sound, like in the word 'at'. The 'sh' is pronounced as a combination of 's' and 'h' sounds, while the 'f' is pronounced as a voiced 'f' sound, similar to a 'v' sound.
Cashflow is a financial term that refers to the movement or flow of cash into or out of a business or individual's finances over a specific period of time. It represents the net amount of money generated or consumed by an entity during that given timeframe.
Positive cashflow occurs when the inflows of cash exceed the outflows, indicating that more money is coming into the entity than is going out. It is typically considered favorable as it allows for the covering of expenses, debt repayments, investments, and potential savings or profits. Positive cashflow can result from various sources such as sales revenue, investments, loans, or proceeds from asset disposals.
Conversely, negative cashflow indicates that more money is being spent or utilized than is being received. This can arise from expenses exceeding revenue, loan repayments, capital investments, or other financial obligations. Negative cashflow can lead to financial difficulties, cash shortages, or potential insolvency if it persists over an extended period.
Cashflow is a key indicator of an entity's financial health and sustainability. It is commonly analyzed by individuals, businesses, and investors to assess liquidity, profitability, and the ability to meet financial obligations. Cashflow statements are often prepared to provide a detailed breakdown of the inflows and outflows of cash, allowing for a comprehensive understanding of an entity's financial position and potential future prospects.
The word "cashflow" is a combination of two separate words: "cash" and "flow".
1. "Cash" is derived from the Old French word "casse" meaning "money box" or "chest". It later evolved into the Latin word "capsa", which referred to a box for holding money or valuables. The term was adopted into Old Italian as "cassa", which specifically denoted a container for money. Eventually, "cash" made its way into English during the 16th century, retaining its meaning as physical currency or money.
2. "Flow" originates from the Old English word "flowan", which means "to flow" or "to move in a stream". It has roots in the Proto-Germanic language, where the word "flōwaną" meant "to wash away" or "to flood".
