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# negative cash flow

phrase (noun phrase: a negative cash flow, negative cash flows); business term

«negative cash flow» in the English dictionary: in the primary school — its meanings, how the lessons use it, and examples, each with its tree on Mova.

## In the primary school

Source: Mova's pupils' dictionary. Licence: [Elamur Cosmic License](https://mova.elamur.ai/free/en/docs/LICENSE/). Reviewed: the dictionary the pupils of Mova's primary school read; its examples quote the lessons and public-domain tales. Ships with Mova.

### Meaning

1. (euphemism, jargon) more money is going out than coming in; the business or person is losing money.
2. (technical) in accounting, a period when the money paid out is greater than the money received.

### In the lessons

Used in business, banking and news to describe losing money in a calm, technical way, so it sounds like a number on a chart and not like trouble. Jargon register, all countries. In maths it is simply money in minus money out giving a number below zero.

### Examples

- The shop had a negative cash flow for three months.
- We're running a negative cash flow — basically we're broke till payday.
- A negative cash flow is normal for a new company in its first year.
- If you earn 20 dollars and spend 30, your cash flow is negative 10 dollars.
- The report explained the negative cash flow by «high start-up costs».
- My pocket money has a serious negative cash flow problem, Dad.

### Note

For numbers: cash flow = money in − money out; negative means the answer is below zero, money is being lost. It does not mean the company is already bankrupt, but it cannot go on for ever. Do not confuse it with profit (a firm can make a profit on paper and still have a negative cash flow). Plain words: losing money, spending more than you earn.