Outbound Cash Flow


DEFINITION of 'Outbound Cash Flow'

Any money a company or individual must pay out when conducting a transaction with another party. Outbound cash flows can include cash paid to suppliers, wages given to employees and taxes paid on income.

BREAKING DOWN 'Outbound Cash Flow'

An outbound cash flow occurs whenever you are required to pay money. The opposite of an outbound cash flow is an inbound one. For example, when a company issues bonds to raise funds, they receive an initial inbound cash flow. However, when they are required to service this debt by paying coupons on the bonds, they company will experience an outbound cash flow.

  1. Cash Flow

    The net amount of cash and cash-equivalents moving into and out ...
  2. Cash Flow From Financing Activities

    A category in the cash flow statement that accounts for external ...
  3. Cash Flow Statement

    One of the quarterly financial reports any publicly traded company ...
  4. Operating Cash Flow - OCF

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

    Any currency that a company or individual receives through conducting ...
  6. Cash Flow From Investing Activities

    An item on the cash flow statement that reports the aggregate ...
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  1. How can companies use the cash flow statement to mislead investors?

    Cash flow is a means for most investors to examine the actual economics of a business they might invest in, especially from ... Read Full Answer >>
  2. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  3. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  4. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  5. How do I use discounted cash flow (DCF) to value stock?

    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>
  6. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>

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