Net Cash Flow

Net Cash Flow - Net Cash Flow is the heart of the economic business case, and the basis for deriving other financial metrics. Cash flow, like income, spotlights on the difference between incoming funds and the money going out over a time. Cash flow results however, include some items found in the income statement, such as depreciation expense. Depreciation expense, for example, represents an actual cash payment during the reporting period, but rather an accounting charge against earnings. As a result, depreciation expense is not a cash outflow in reality. The income statement tells stockholders and taxing authorities what the company cash flow is.