Retained Cash Flow - RCPDEFINITION

Retained Cash Flow - RCP
DEFINITION OF 'RETAINED CASH FLOW - RCP'
A measure of the net change in cash and cash equivalent assets at the end of a financial period. It is the difference between the incoming and outgoing cash for the period. retained cash flow is cash left over after the company uses cash for expenses and dividends, and is typically used to reinvest into positive net present value (NPV) projects.

INVESTOPEDIA EXPLAINS 'RETAINED CASH FLOW - RCP'
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.

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