Cash Flow Forecast
Definition
A projection of the cash expected to flow into and out of a business over a future period, used to anticipate shortfalls and surpluses and to plan financing and spending.
Related Terms in Financial Analysis
Sensitivity Analysis
Testing how a result — such as profit or a valuation — changes when one key assumption is varied, to see which assumptions matter most and how much risk they carry.
Scenario Planning
Building several plausible future cases — such as best, base and worst — and modelling the financial outcome of each, so a business can prepare for a range of conditions rather than a single forecast.
Capital Budgeting
The process of evaluating and selecting long-term investments such as equipment or projects, using tools like NPV, IRR and payback to decide where to commit capital.
Current Ratio
Current assets divided by current liabilities, a measure of whether a business can meet obligations falling due within a year. Above 1 means current assets cover current liabilities; what counts as healthy varies sharply by industry.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.