Definition of Net cash:
Net cash is the result of a company's total cash minus total liabilities reported on its financial statements. It is commonly used in evaluating a company's cash flows. Net cash also refers to the amount of cash remaining after a transaction has been completed and all associated charges and deductions have been subtracted.
Net cash refers to the amount of funds gained or lost after all obligations and liabilities are deducted from a single transaction or multiple transactions. Similar to the current ratio, net cash is a measure of a company's liquidity, or ability to quickly meet their financial obligations. Obligations can include standard operating costs, payments on debts, and investment activities. Calculating net cash begins with adding up all receipts for a period, often referred to as the gross. Once totaled, obligations and liabilities are deducted, and the difference is net cash.
The amount of cash-on-hand claimed on financial statements after subtracting current liabilities. Net cash is typically an indicator of a companys cash flow position at the end of a reporting period.
Meaning of Net cash & Net cash Definition