Cash flow

Refers to the difference between receipts and payments actually made over a particular period, as a result of a company's operations (it is not the same as the accrued expenses and income, which may be recorded for accounting purposes but are not always immediately reflected in the cash account). To this entrance and exit of money also you calls ‘flujo of tesorería’. In the sphere of business analyses and valuations, a distinction is made between the concepts of cash flow (profit after tax plus depreciation and amortization) and free cash flow. The latter is obtained by deducting from the cash flow the investments required to cover the company's operational needs, thus representing its effective liquidity.