cash-flow potential

USAGE SUMMARY

The phrase "cash-flow potential" is correct and usable in written English.
It can be used when discussing the ability of a business or investment to generate cash flow in the future. Example: "Investors are particularly interested in the cash-flow potential of startups before committing their funds."

✓ Grammatically correct

News & Media

Science

Human-verified similar examples from authoritative sources

Similar Expressions

59 human-written examples

The cash flow potential for anyone with gas in California is quite substantial".

The New York Times

In addition, the market is not adequately discounting the sales, profit and cash flow potential stemming from last year's acquisition of the North American bottling business.

Forbes

Using a sample of distressed firms in the US manufacturing industry, we find that both short-term cash flow potential as well as strategic growth and hence long-term cash flow potential are necessary for strategic turnaround initiatives to have a mitigating impact on the auditor's going-concern decision.

Accounting, Organizations and Society

After Inco dropped its Falconbridge bid, J. Steven Whisler J. Steven Whisler, the Phelps Dodge chief executive, said, "With an excellent outlook for sustained high copper and nickel prices, Phelps Dodge Inco will have tremendous earnings and cash flow potential.

Forbes

But with the attractive cash flow potential of American retail firms apparent in the long term, don't count out Baugur's war chest of £600 million ($1.2 billion) just yet.

Forbes

All of these stocks have several things in common: They have strong cash flows paired with cheap valuations, they present compelling risk-reward tradeoffs as their valuations underestimate their cash flow potential, and most if not all of the most attractive stocks trade at major discounts to the value of their existing cash flows despite the fact that their cash profits are growing.

Forbes

Both are also well aware of the monetary rewards of real estate appreciation, cash flow potential, leverage and the benefits of depreciation.

Huffington Post

"The first thing that should be done is to work with the Legislature to mitigate any potential cash-flow problem," Mr. Shafran said.

The New York Times

"It's a subtle thing," admits Weiser, who began calling attention to Colgate's potential cash-flow woes in June 2002.

Forbes

Vringo says it believes that the m-Wise acquisition will be cash-flow accretive with the potential to reduce Vringo's overall burn rate in the first full year of combined operations.

TechCrunch

* Potential risks to cash-flow forecasts and valuations should be discussed in detail.

The New York Times

Expert writing Tips

Best practice

When analyzing a company's financial health, consider the "cash-flow potential" in conjunction with other metrics like revenue and profit margins to gain a holistic understanding.

Common error

Do not solely rely on immediate cash flow when evaluating "cash-flow potential". Consider long-term trends, market conditions, and potential disruptions that could affect future cash generation.

Linguistic Context

The phrase "cash-flow potential" functions as a noun phrase, typically used as the object of a verb or the subject of a clause. Ludwig provides examples where it describes a company's capacity to generate cash in the future.

Expression frequency: Rare

Frequent in

News & Media

35%

Formal & Business

33%

Science

32%

Less common in

Academia

0%

Wiki

0%

Social Media

0%

Ludwig's WRAP-UP

The phrase "cash-flow potential" is a grammatically correct and understandable term used to describe the ability of a business or investment to generate cash in the future. Ludwig AI confirms its validity and demonstrates its use in various contexts. While "cash-flow potential" is relatively straightforward, its usage requires careful consideration of both short-term and long-term factors. Alternatives like "earnings potential" or "revenue generation capacity" offer slightly different shades of meaning. The phrase is most frequently found in news, media, and business contexts, indicating its professional and neutral tone.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Future cash generation

Rephrases as a process rather than a potential.

Expected cash flow generation

Adds emphasis on the anticipation of cash flow.

Projected cash inflows

More specific about the direction of cash movement.

Capacity to generate cash

Highlights the inherent ability to create cash flow.

Earnings potential

Focuses more broadly on the ability to generate profit, not specifically cash.

Revenue generation capacity

Highlights the capability to produce income.

Profitability prospects

Emphasizes future profitability, a related but distinct concept.

Income-generating possibilities

Highlights the ability to create income streams.

Liquidity prospects

Focuses on the availability of liquid assets.

Investment's return prospects

Emphasizes the possibility of return on investment.

FAQs

How can I use "cash-flow potential" in a sentence?

You might say, "Investors are evaluating the "cash-flow potential" of the new startup" or "The company's "cash-flow potential" is a key factor in its valuation".

What is a good alternative to "cash-flow potential"?

Depending on the context, you could use "earnings potential", "revenue generation capacity", or "profitability prospects" as alternatives.

What does "cash-flow potential" mean?

It refers to the ability or capacity of a business, investment, or asset to generate cash flow in the future. It is a key metric for assessing financial viability and investment attractiveness.

How do you assess the "cash-flow potential" of a business?

Assessing "cash-flow potential" involves analyzing historical financial statements, projecting future revenues and expenses, considering market trends, and evaluating the company's competitive position.