Cash Flow Systems Glossary

Money owed by customers who received goods or services but have not yet paid.

Records revenue when earned and expenses when incurred, regardless of when cash changes hands.

The monthly rate at which a company spends its cash reserves. Net burn rate subtracts revenue from total spending.

Funds spent to acquire, upgrade, or maintain long-term physical assets.

Days between paying for inventory and collecting cash from sales, calculated as DIO + DSO - DPO.

A non-cash expense allocating the cost of a tangible asset over its useful life.

Cash flowing between the company and its capital providers, including stock issuance, borrowing, debt repayment, and dividends.

Operating cash flow minus capital expenditures; the cash available for distribution or reinvestment.

Calculates operating cash flow by starting with net income and adjusting for non-cash items and working capital changes.

Cash used for or generated from buying and selling long-term assets like property, equipment, or investments.

Cash generated from core business activities such as selling goods, paying suppliers, and compensating employees.

Months a company can operate at its current burn rate before running out of cash.

Current assets minus current liabilities; a measure of short-term liquidity.