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Cash Flow

Cash flow is the net movement of cash into and out of a business over a defined period, reflecting the actual liquidity generated or consumed by operating, investing, and financing activities. Unlike profit — which is an accounting construct shaped by accruals, deferrals, and non-cash items — cash flow shows what money actually moved. For mid-market companies, understanding cash flow is critical because profitable businesses can still fail if they run out of cash.

Why This Matters

Cash flow is the most honest indicator of financial health. Accrual accounting can mask timing problems — revenue booked but not collected, costs deferred but still due. For mid-market companies without deep credit facilities, a cash flow shortfall is an existential risk, not just an accounting variance. Monitoring cash flow separately from profit is the baseline for sound financial management.

Where This Fits

Exhibit Where the cash went

From EBITDA to operating cash flow · EUR thousands

0845−1,835+445(545)EBITDAWorking capitalNon-cash & otherOperating cash
Source: Onetribe governed layer — cash-flow bridge, Jan–Aug 2025. Working capital absorbed €1,835 of the €845 earned.

This term sits within the Reporting Infrastructure area of Performance & Control.

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