The Business Case Dictionary

What is Net Cash Flow?

Net cash flow is the amount of cash that the business case generates or consumes over a certain period of time, typically a year. It is calculated by taking the total cash inflows, such as sales revenue and subtracting the total cash outflows, such as expenses, CAPEX, and debt payments. Net cash flow can be positive or negative, depending on whether the company generated more cash than it consumed or vice versa.

Net cash flow is an important measure of the business case's financial performance, as it indicates whether the company is generating enough cash to cover its expenses and obligations.

A business with a positive net cash flow is able to fund its operations and growth without needing to rely on external financing, while a business with a negative net cash flow in the initial years will need to source funding to meet its financial commitments.

Net cash flow is typically reported on as a cash flow statement, which is one of the financial statements used to assess a business case's financial performance.


To develop a financially robust business case, you will need to model the net cash flow for each business case option and scenario.

Net cash flow is one of the features of the Financial Analysis Templates.