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Explanation: Net Cash Flow represents the difference between the cash inflows and outflows from a company’s operating, investing and financing activities over a specific period, typically a fiscal year. It reflects the overall change in a company’s cash and cash equivalents during the period. A positive net cash flow indicates that the company generated more cash than it spent, while a negative net cash flow suggests that the company spent more cash than it received.
Example: TCS had a Net Cash Flow of -5,874 crore rupees as of FY23. This indicates that TCS’s cash outflows exceeded its cash inflows during the fiscal year. A negative net cash flow may result from various factors such as heavy capital expenditures, debt repayments or dividend payments exceeding cash generated from operations. Monitoring Net Cash Flow helps assess a company’s liquidity position, its ability to fund its operations and investments, and its overall financial health.
You can view the Net Cash Flow for any company on Radar in the Cash Flow section.