Cash Flow Calculator

Analyze operating, investing, and financing cash flows to understand your business financial health

Beginning Cash Balance

$

Operating Activities

Cash flows from day-to-day business operations

$

Starting point for cash flow

$

Non-cash expense (add back)

$

Non-cash expense (add back)

$

Increase = negative, Decrease = positive

$

Increase = negative, Decrease = positive

$

Increase = positive, Decrease = negative

$
Operating Cash Flow: $540,000

Investing Activities

Cash flows from buying and selling long-term assets

$

Purchase of PP&E (negative)

$

Proceeds from asset sales

$

Securities/equity purchases

$

Proceeds from investment sales

$
Investing Cash Flow: ($95,000)

Financing Activities

Cash flows from debt, equity, and dividend transactions

$

New debt issued (positive)

$

Principal payments (negative)

$

New shares issued

$

Dividends to shareholders

$

Treasury stock purchases

$
Financing Cash Flow: ($15,000)

Cash Flow Summary

Beginning Cash Balance$100,000
Operating Cash Flow$540,000
Investing Cash Flow($95,000)
Financing Cash Flow($15,000)
Net Cash Flow$430,000
Ending Cash Balance$530,000

Key Metrics

Free Cash Flow:$440,000
FCF to Equity:$450,000
EBITDA:$560,000
OCF Ratio:108.0%
FCF Margin:88.0%
CF Coverage:5.40x
🌟 Excellent Cash Flow Health
Strong cash position with positive flows across all activities

Cash Flow Categories

Operating Activities

Daily business operations

Investing Activities

Long-term asset transactions

Financing Activities

Debt and equity transactions

Key Insights

✓

Positive operating cash flow indicates healthy core business

✓

Positive free cash flow available for growth and returns

•

Negative investing CF often shows growth investments

•

Dividend payments return value to shareholders

Analysis Tips

💡

Strong operating CF is most important for sustainability

💡

Free cash flow measures true cash generation ability

💡

Compare cash flow to net income for quality check

💡

Monitor cash conversion cycle efficiency

💡

Analyze trends over multiple periods

Understanding Cash Flow Statement

What is Cash Flow?

Cash flow is the movement of money in and out of a business. The cash flow statement shows how changes in balance sheet and income affect cash, separated into operating, investing, and financing activities.

Key Formulas

Free Cash Flow:

FCF = Operating CF - Capital Expenditures

FCF to Equity:

FCFE = FCF + Net Borrowing

Net Cash Flow:

NCF = Operating + Investing + Financing

Cash Flow Categories

Operating Activities

Cash from core business operations: sales, expenses, working capital changes. Most important indicator of business health.

Investing Activities

Cash spent on/received from long-term assets: property, equipment, investments. Shows growth investments.

Financing Activities

Cash from debt and equity transactions: borrowing, repayments, dividends, stock issuance/buybacks.

Pro Tip: A healthy business typically has positive operating cash flow, negative investing cash flow (growth), and variable financing cash flow.

Working Capital Changes

A/R Increase
Negative Impact
A/R Decrease
Positive Impact
A/P Increase
Positive Impact
A/P Decrease
Negative Impact