Cash Flow

What is a cash flow?

The cash flow describes the amount of liquid funds that a company receives on balance within an accounting period. Cash flow is calculated as follows: Net income +/- depreciation/amortization/write-ups of non-current assets +/- increase/decrease in non-current provisions +/- other expenses or income not affecting liquidity. The cash flow is used for the company valuation according to the discounted cash flow method.

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