Cash flows of a company are classified into three main heads or, we can say, as per three types of activities. These activities are operating activity, investing activity, and financing activity. Net cash is the sum of revenues (or losses) generated from these activities. Or it is an increment or decrement in the balance of cash and cash equivalents of the company. It can be either negative or positive. The net cash flow calculator is a tool to simplify such calculations.
One can also calculate the net cash flows by subtracting opening cash flows from closing cash flows.
Cash flows from all the activities. That is, operating activity, investing activity, and financing activity is summed up to provide net cash flows.
A mathematical representation of the above formula of net cash flows is as follows:
Net Cash Flow = Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash Flow from Financing Activities
Net Cash Flow Calculator
How to Calculate using Calculator?
The user has to input the following three figures into to calculator for quick results.
Cash Flow from Operating Activities – Cash flows from operating activities aim to determine the net result of the company from its core business operations. Or simply say, it is the cash generated by selling goods or services. Operating cash flow is derived by making adjustments of non-cash items and changes in working capital with the net profits of the company.
Cash Flow from Investing Activities – Any increase or decrease in cash due to any increment or decrement in assets of the company in monetary terms is the cash flow of the company from its investing activities. This includes the purchase or sales of machines, investments, or providing loans to any third party or receiving the payment of any such loans, etc.
Cash Flow from Financing Activities – Any inflow or outflow of funds due to an increase or decrease in capital and liabilities of the company results in cash flow generated from financing activities. It includes issuing share capital, debentures, paying off loans, distributing dividends, buyback of capital, etc.
Excel Calculator – Net Cash Flow
You can also download our excel based calculator for net cash flow.
Excel Calculator For Net Cash Flow (256 downloads )