Name: 10. ¡Pero qué caramba significa el “Cash Flow”!
Uploaded: 2016-06-02T14:06:06.000Z
Duration: 14 min 52 s
Description: En el vídeo 2 del Módulo 4 “¿Pero qué caramba significa el Cash Flow?” del MOOC de Finanzas para no financieros se explica a través de ejemplos prácticos el concepto de “Cash Flow” , aclarando a su vez posibles confusiones que pueden surgir con la tesorería. Conceptos adquiridos: Cash Flow

10. ¡Pero qué caramba significa el “Cash Flow”!

Cash Flow Calculation and Implications

Understanding Cash Flow

The cash flow is calculated as profit minus amortizations and provisions, leading to a total sum. In the example provided, the company's profit for the exercise was 20 million, with amortizations and provisions totaling 10 million, resulting in a cash flow of 30 million.

The significance of generating 30 million in cash flow is explored. It indicates the liquidity created by the company during this period. Understanding what this figure represents is crucial for financial analysis.

Cash Transactions Example

An illustrative scenario is presented where all transactions are conducted in cash—meaning income equals collections and expenses equal payments. This simplification helps clarify how cash flow operates under ideal conditions.

At the end of the exercise, it’s calculated that after receiving 200 million in revenue and paying out 80 million in variable costs, there remains 120 million available before accounting for fixed costs of 70 million, leaving a balance of 50 million in cash.

Impact of Non-Cash Items

Amortizations and provisions do not affect cash directly; they are accounting entries that do not withdraw funds from liquidity. Thus, despite these deductions, the company retains its available cash at 50 million before interest payments.

After deducting bank interest payments (15 million) and taxes owed to the state, the final liquidity stands at 30 million generated by operations within this exercise period. This emphasizes that while non-cash items exist on paper, they don't impact immediate liquidity directly.

Realities of Cash Flow Management

Acknowledging that most companies do not operate entirely on a cash basis raises questions about when actual funds will be available versus when they are generated as part of business activity—highlighting potential discrepancies between reported figures and real-time availability.

It's possible to have more than 30 million at year-end if collections occur faster than payments; however, it's essential to recognize that regardless of current balances seen in accounts, the underlying generated cash flow remains at 30 million until all obligations are settled over time.

Timing Considerations

The timing of when funds will actually be available can vary significantly based on payment terms; thus understanding these dynamics is critical for effective financial planning and management within any business context. If receivables come later than payables due to credit terms (e.g., collecting after 30 or even up to 90 days), actual liquid assets may fall below expected levels temporarily but will stabilize as collections catch up with obligations over time.

Ultimately, whether there’s more or less than anticipated in liquid assets does not change the fact that a robust mechanism exists within operations capable of generating consistent liquidity over time—a key takeaway for managing future expectations around financial health and operational efficiency within businesses moving forward into subsequent periods or fiscal years ahead.