What's cash flow?

Question

I study marketing and finance in France, and this is my first year in this domain, I have some problems understanding what's cash flow, pay back, etc. Thank you for helping me.

Answer 1

Cash flow is a statement over a period of time revealing the availability, or lack, of cash. More simply put the difference between cash in (income) vs. cash out (expenses). Since money does not flow in and out at an equal rate, in most businesses, an analysis of cash flow is important, especially of businesses that are cyclical in nature, or subject to external forces.

Payback is an estimate of how long it will take before the cost of a capital investment project is covered by the future net cash flows arising from that project

Answer 2

Cash flow is the amount of cash generated annually by an investmetn. It is equal to the Net Incomce + depreciation.
Pay back period is the number of years in which the investement is recovered. That is the ratio of Present value of all cash flow for the life of the project divided by annual cash flow.
Why do you learn Marketing and Finance together, both has different philosophies in that one is a 'cash Hog' while finance is a 'cash generator'. You might find conflicting ideas creeping into your mind learning them simultaneously.

Answer 3

cash flow would be a consistance amount of money coming in....if you make so much money every week then you have a cash flow of that amount.

I'm guessing the pay back of cash flow would be paying the amount of money back that you put in to start your cash flow or to get your cash flow weekly or bi-weekly.

Answer 4

money bypass is largely from gross sales...it isnt inevitably earnings. imagine of a convenience save gas station. They take in alot of money on an prevalent foundation (intense money bypass). This doesnt propose that they get to save all of it because they have alot of costs too... (ex. gas, value of things, wages, coverage, taxes etc. ) earnings bypass is the money left over on the end of the day.