Net Cash Flow Calculator

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 (73 downloads )

Sanjay Borad

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

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