Definition:
Net cash flow, a measure of a company's short-term financial health, can be defined in two ways:
On the cash budget, net cash flow is the difference between the company's cash inflows (cash receipts) and cash outflows (cash payments).
Net cash flow is a company's net income plus depreciation and amortization as stated on the Statement of Cash Flows.
Examples:
XYZ, Inc.'s net cash flow has been positive for six months in a row, indicating excellent short-term financial health.