Net Cash

A company's total cash minus total liabilities when discussing financial statements. Net cash is commonly used in evaluating a company's cash flow. More generally, net cash can refer to the amount of cash remaining after a transaction has been completed and all charges and deductions related to the transaction have been subtracted.

"Net cash" may also be used as short form for "net cash per share", a stock investing term. More commonly, "net cash" will appear with another word, as in "net cash flow", "net cash income" or "net cash stock".

Investors can use net cash to help determine whether a company's stock offers an attractive investment opportunity, and in some cases it can be used in conjunction with other measures to gauge the company's liquidity. Also, net cash might be used to assess whether a company has enough cash to make investments in future projects.


Investment dictionary. . 2012.

Look at other dictionaries:

  • net cash — Cash without the allowance of a discount. Dow Chemical Co. v Detroit Chemical Works, 208 Mich 157, 175 NW 269, 14 ALR 1200. The price of an article after discount deducted. The condition of payment by the purchaser before the seller is under… …   Ballentine's law dictionary

  • net cash flow — Cash inflow minus cash outflow. It is often measured as income after tax plus non cash expenses associated with a particular investment project (i.e., depreciation, amortization, etc.) …   Black's law dictionary

  • net cash investment in a lease — net investment in a lease The amount of funds invested in a lease by a lessor. It comprises the cost of the leased asset, together with grants received, rentals received, taxation payments and receipts, residual values, interest payments,… …   Accounting dictionary

  • net cash flow — cash balance remaining in a business possession (Accounting) …   English contemporary dictionary

  • net cash flow — /net kæʃ fləυ/ noun the difference between the money coming in and the money going out …   Marketing dictionary in english

  • net cash flow — /net kæʃ fləυ/ noun the difference between the money coming in and the money going out …   Dictionary of banking and finance

  • net cash flow — The difference between the cash coming into an organization (cash inflows) and that going out of it (cash outflows) in a financial period. The difference may be positive, in which case there is a surplus of cash, or negative, in which case there… …   Accounting dictionary

  • Net cash balance — Beginning cash balance plus cash receipts minus cash disbursements. The New York Times Financial Glossary …   Financial and business terms

  • net cash balance — Beginning cash balance plus cash receipts minus cash disbursements. Bloomberg Financial Dictionary …   Financial and business terms

  • net cash balance — Fin the amount of cash that is on hand …   The ultimate business dictionary

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