Inbound Cash Flow


DEFINITION of 'Inbound Cash Flow'

Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow can include sales revenue generated through business operations, refunds received from suppliers, financing transactions and amounts won through legal proceedings.

BREAKING DOWN 'Inbound Cash Flow'

Any positive cash additions to an entity's bank account. When a salesperson is paid from their employer for their time spent working, this an inbound cash flow for the employee. Conversely, this payment to the employee represents an outbound cash flow for the employer. When the salesperson successfully completes a sale to a customers, this represents and inbound cash flow for the company.

As well, consider a company going through a round of debt financing. When a company issues bonds, they are borrowing money, which will need to be repaid in the future (with interest). However, at the time the bond is sold, the company receives the cash, which makes it an inbound cash flow for the company. When the bond is later repaid, this is an outbound cash flow for the company.

  1. Cash Flow

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  2. Cash Flow From Financing Activities

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  3. Cash Flow Statement

    One of the quarterly financial reports any publicly traded company ...
  4. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash ...
  5. Cash Flow From Investing Activities

    An item on the cash flow statement that reports the aggregate ...
  6. Operating Cash Flow - OCF

    Operating Cash Flow (or OCF) is a measure of the amount of cash ...
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