Definition
Positive cash flow is the cash flowing into a business after the expenses are paid. It's important to have positive cash flow to properly continue on with your business or investment.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Positive cash flow on the board and restates it: “Situation where a company's cash inflows exceed its cash outflows.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Positive cash flow as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Positive net present value
Investment that generates more value than its initial cost.
Read definition →
Net Revenue Retention (NRR)
How revenue from last year’s customers changed after expansion, contraction, and churn.
Read definition →
Operating profit margin
Financial ratio measuring operating profit as a percentage of revenue.
Read definition →
Profit Margin
Percentage of revenue that remains as profit after expenses.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.