Home » Accounting Terms Dictionary » Cash Accounting Terms Dictionary » Retained Cash Flow - Rcp

Definition Of Retained Cash Flow - Rcp:

A measure of the netchange in cashand cash equivalentassets at the end of a financial period.
It is the difference between the incoming and outgoing cash for the period. retained cash flow iscash left over after the companyuses cashfor expenses and dividends, and is typically used to reinvest into positive net present value (NPV)projects.Retained cash flow is a good indication of the cash available for reinvestment in the following period. It is very useful statistic when creating a budget, gauging financial success, and forecasting future revenues/expenses.In addition, if a company doesn't have positive retained cash flow and they wish to finance positive NPV projects, it may raise external funds such as debt or equity.

Other Definition Of Accounting Terms:

Retirement Contribution
Return On Assets - Roa
Return On Average Equity - Roae
Return On Capital Employed - Roce
Return On Debt - Rod
Return On Equity - Roe

Browse Accounting Terms By First Letter:

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z |

We provide an offline version of this dictionary and you can download it free now.

Browse Business Dictionary By Category:

Main | Business | Accounting | Insurance | Economic | Real Estate | Metal Trading | Trading | Business Agreement | Industry | Marketing | Human Resource | Transportation | Environment | Quality Control | Ecommerce | Inventory Control | Business Communications | Logistics | Customer Relation |