positive cash flow

USAGE SUMMARY

The phrase "positive cash flow" is correct and usable in written English.
It is typically used in financial contexts to describe a situation where a company's incoming cash exceeds its outgoing cash over a specific period. Example: "The company reported a positive cash flow for the third quarter, indicating strong financial health."

✓ Grammatically correct

Formal & Business

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

You have to have a product that appeals to consumers and provides for a net positive cash flow position.

Forbes

"They're showing positive cash flow and good cost savings.

The New York Times

Differences between positive cash flow and profitable project are discussed.

Practical Engineering Management of Offshore Oil and Gas Platforms

You need that positive cash flow to invest in facilities.

The New York Times - Sports

No business had a positive cash flow in the first two years; 6 businesses had a positive cash flow in the second two years.

Harvard Business Review

Who needs positive cash flow when the numbers of "engaged shoppers" are flying?

The New York Times

"We expect positive cash flow in Mexico during 2006," he said.

The New York Times

Daily direct electronic billing from my office created a positive cash flow after just four months.

The New York Times

But Mr. Slav said he was uncertain whether Lucent would have positive cash flow by then.

The New York Times

"This will be a positive cash flow," said Rick Chaffin, Corinth's city manager.

The New York Times

Most analysts think it will have positive cash flow in 2009, but not by much.

The New York Times

Expert writing Tips

Best practice

In financial reports, always quantify "positive cash flow" with specific numbers to provide concrete evidence of the company's financial performance.

Common error

Avoid assuming that "positive cash flow" automatically means a company is profitable. A company can have positive cash flow while still operating at a net loss due to factors like depreciation or high capital expenditures. Profitability takes into account all revenues and expenses, whereas cash flow focuses specifically on the movement of cash.

Linguistic Context

The phrase "positive cash flow" primarily functions as a noun phrase that describes a specific financial condition. It's used to indicate that a business or entity is generating more cash than it is spending. As Ludwig AI indicates, this phrase is widely used in financial contexts.

Expression frequency: Very common

Frequent in

News & Media

45%

Formal & Business

35%

Science

20%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "positive cash flow" is a commonly used phrase that describes a financially healthy situation where incoming cash exceeds outgoing cash. As Ludwig AI states, the phrase is grammatically correct and widely used. It's most frequently found in News & Media and Formal & Business contexts, indicating its importance in financial reporting and analysis. To ensure clarity, it's crucial to avoid confusing it with profitability and to use concrete numbers when discussing it. Consider using synonyms like "favorable cash position" or "net positive cash flow" for variety.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

net positive cash flow

Emphasizes the resulting positive amount after accounting for outflows.

cash flow surplus

Reverses the word order while maintaining the same meaning.

favorable cash position

Focuses on the advantageous state of cash reserves.

cash-positive operations

Focuses on the operational aspect that yields positive cash.

surplus cash flow

Highlights the excess of cash available.

healthy cash flow

Indicates a robust and stable financial state.

strong cash flow

Highlights the robustness of the cash generation.

cash inflow exceeds outflow

Expresses the concept in terms of inflows and outflows.

generating cash

Highlights the act of producing a surplus of money

liquid assets increasing

Describes the outcome of positive cash flow in broader financial terms.

FAQs

How is "positive cash flow" used in financial analysis?

"Positive cash flow" indicates that a company's incoming cash exceeds its outgoing cash during a specific period. It's a key indicator of financial health, showing the company's ability to meet its obligations and invest in future growth. Analyzing trends in cash flow can reveal insights not immediately apparent from profit figures alone.

What are some alternatives to saying "positive cash flow"?

Depending on the context, you could use alternatives like "favorable cash position", "net positive cash flow", or "cash flow surplus".

How does "positive cash flow" differ from profitability?

"Positive cash flow" means a company is generating more cash than it's spending, while profitability means a company's revenues exceed its expenses. A company can have positive cash flow but still be unprofitable due to non-cash expenses like depreciation, or it can be profitable but have negative cash flow due to investments in assets.

Why is maintaining a "positive cash flow" important for businesses?

Maintaining a "positive cash flow" ensures that a business has enough liquidity to cover its short-term obligations, invest in growth opportunities, and withstand unexpected financial challenges. Without it, a business may struggle to pay its bills, fund its operations, and remain solvent, even if it's profitable on paper.