Available Cashflow is the amount of money that a business or individual has readily accessible for immediate use or investment after deducting all necessary expenses and obligations. It represents the surplus funds that can be used for various purposes such as paying bills, making purchases, investing in new ventures, or saving for future needs. Available Cashflow is a crucial financial metric that indicates the financial health and liquidity of an entity, allowing for better decision-making and planning for both short-term and long-term financial goals.
Available cashflow refers to the amount of money that a company has on hand after deducting its operating expenses and other financial obligations. It is a measure of the company’s liquidity and ability to meet its short-term financial obligations. Available cashflow is calculated by subtracting the company’s operating expenses, such as salaries, rent, and utilities, from its total revenue. This figure represents the cash that is available for the company to use for various purposes, such as investing in new projects, paying off debts, or distributing dividends to shareholders. It is an important metric for investors and creditors to assess the financial health and stability of a company.
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This glossary post was last updated: 29th March 2024.
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