How to Calculate Net Cash Flow in Excel (3 Suitable Examples)

Looking for ways to know how to calculate net cash flow in Excel? Sometimes, we have to calculate net cash flow of a company for a specific period. Here, you will find step-by-step explained ways to calculate net cash flow with 3 examples in Excel.


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What Is Net Cash Flow?

Net Cash Flow is an indicator of a company’s current condition. It represents the cash earned or lost by the company for a given period.

We can calculate the Net Cash Flow by determining the difference between the Total Cash Inflows and Total Cash Outflows of a company.

Net Cash Flow = Total Cash Inflows - Total Cash Outflows 

We can also calculate the Net Cash Flow by adding the values of Cash Flow from Operating, Investing, and Financing Activities of a company.

Net Cash Flow = Operating Cash Flow + Investing Cash Flow + Financing Cash Flow

3 Examples to Calculate Net Cash Flow in Excel

Now, we will show you how to calculate Net Cash Flow in Excel using 3 examples.


1. Calculating Net Cash Flow from Operating, Investing and Financing Activities in Excel

Here, we have a dataset containing the values of Net Cash Flow from Operating, Investing, and Financing Activities of a company.

Now, we will show you how to calculate Net Cash Flow in Excel using this dataset.

Calculating Net Cash Flow from Operating, Investing and Financing Activities in Excel

Follow the steps given below to do it on your own.

Steps:

  • Firstly, select Cell C8.
  • Then, insert the following formula.
=SUM(C5:C7)

Here, in the SUM function, we added the values of Cell range C5:C7 to get the value of Net Cash Flow.

  • After that, press ENTER to get the value of Net Cash Flow.

Calculating Net Cash Flow from Operating, Investing and Financing Activities in Excel

Read More: Create Cash Flow Statement Format Using Direct Method in Excel


2. Preparing a Cash Flow Statement to Calculate Net Cash Flow in Excel

Next, we will show you how to prepare a Cash Flow Statement to calculate Net Cash Flow in Excel.

Here, we have a dataset containing some Financial Transactions of a company. Now, we will use this dataset to prepare a Cash Flow Statement for that company. Go through the steps given below to do it on your dataset.

Preparing a Cash Flow Statement to Calculate Net Cash Flow in Excel


Step-01: Determining Cash Flow from Operating Activities

Here, we will show you how to determine the value of Cash Flow from Operating Activities using the given Transactions. Follow the steps given below to do it on your own.

  • Firstly, insert the values of Cash Flow From Debtors, Cash Flow From Creditors, Income Tax Paid and Depreciation from the Preparing a Cash Flow Statement sheet using the following formulas in Cell C5, Cell C6, Cell C7, and Cell C8 respectively.
='Preparing a Cash Flow Statement'!C5
='Preparing a Cash Flow Statement'!C6
='Preparing a Cash Flow Statement'!C7
='Preparing a Cash Flow Statement'!C9

Determining Cash Flow from Operating Activities

  • Now, select Cell C9.
  • After that, insert the following formula.
=SUM(C5:C8)

Here, in the SUM function, we added the values of Cell range C5:C8 to get the value of Cash Flow from Operating Activities.

  • Finally, press ENTER to get the value of Cash Flow from Operating Activities.

Determining Cash Flow from Operating Activities


Step-02: Calculating Cash Flow from Financing Activities

Now, we will show you how to calculate Cash Flow from Financing Activities. Go through the steps given below to do it on your own.

  • In the beginning, insert the values of Loans Raised and Loans Repaid from the Preparing a Cash Flow Statement sheet using the following formulas in Cell C10 and Cell C11 respectively.
='Preparing a Cash Flow Statement'!C8
='Preparing a Cash Flow Statement'!C11

Calculating Cash Flow from Financing Activities to Calculate Net Cash Flow in Excel

  • After that, select Cell C9.
  • Then, insert the following formula.
=SUM(C10:C11)

Here, in the SUM function, we added the values of Cell range C5:C8 to get the value of Cash Flow from Financing Activities.

  • Finally, press ENTER to get the value of Cash Flow from Financing Activities.

Calculating Cash Flow from Financing Activities to Calculate Net Cash Flow in Excel


Step-03: Determining Cash Flow from Investing Activities

Next, we will show you how to determine the value of Cash Flow from Investing Activities using the given Transactions. Follow the steps given below to do it on your own.

  • Firstly, insert the values of Sold Equipments and Land Purchased from the Preparing a Cash Flow Statement sheet using the following formulas in Cell C13 and Cell C14 respectively.
='Preparing a Cash Flow Statement'!C10
='Preparing a Cash Flow Statement'!C12

Determining Cash Flow from Investing Activities to Calculate Net Cash Flow in Excel

  • Then, select Cell C15.
  • Next, insert the following formula.
=SUM(C13:C14)

Here, in the SUM function, we added the values of Cell C13 and Cell C14 to get the value of Cash Flow from Investing Activities.

  • Finally, press ENTER to get the value of Cash Flow from Investing Activities.

Determining Cash Flow from Investing Activities to Calculate Net Cash Flow in Excel


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Step-04: Calculating Net Cash Flow in Excel

In the Final step, we will add the values of Cash Flow from Operating, Financing, and Investing to get the value of Net Cash Flow. Go through the steps given below to do it on your own.

  • In the beginning, select Cell C16.
  • Now, insert the following formula.
=C9+C12+C15

Calculating Net Cash Flow in Excel

Here, in the formula, we added Cell C9, Cell C12, and Cell C15 to get the value of Net Cash Flow.

  • Finally, press ENTER to get the value of Net Cash Flow.

Read More: How to Calculate Operating Cash Flow in Excel (2 Easy Ways)


3. Using Total Inflow and Outflow to Calculate Net Cash Flow in Excel

In the last example, we will show you how to calculate Net Cash Flow in Excel using Total Inflow and Total Outflow. Total Inflow is the amount of cash earned and Total Outflow represents the amount of cash used in a business.

Here, we have a dataset containing the values of Inflows and Outflows of January, February, and March of a company. Now, we will calculate Net Cash Flow in Excel using this dataset.

Using Total Inflow and Outflow to Calculate Net Cash Flow in Excel

Follow the steps given below to do it on your own.


Step-01: Calculating Total Inflow

Now, we will show you how to calculate the Total Inflow for the given dataset.

  • Firstly, select Cell D8.
  • Then, insert the following formula.
=SUM(D6:D7)

Calculating Total Inflow

Here, in the SUM function, we added the values of Cell D6 and Cell D7 to get the value of Total Inflows.

  • After that, press ENTER to get the value of Total Inflows.
  • Now, drag right the Fill Handle tool to AutoFill the formula for the rest of the cells.

  • Finally, formulas will be applied for the values of Total Inflows for January, February, and March.

Calculating Total Inflow


Step-02: Determining Total Outflow

Now, we will show you how to determine the Total Outflow for the given dataset.

  • In the beginning, select Cell D14.
  • Then, insert the following formula.
=SUM(D9:D13)

Determining Total Outflow to Calculate Net Cash Flow in Excel

Here, in the SUM function, we added the values of Cell range D9:D13 to get the value of Total Inflows.

  • Next, press ENTER to get the value of Total Outflows.
  • After that, drag right the Fill Handle tool to AutoFill the formula for the rest of the cells.

  • Finally, formulas will be applied for the values of Total Outflows for January, February, and March.

Determining Total Outflow to Calculate Net Cash Flow in Excel


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Step-03: Calculating Net Cash Flow in Excel

In the final step, you will find how to calculate Net Cash Flow using the values of Total Inflows and Outflow. Go through the steps given below to do it on your own.

  • Firstly, select Cell D15.
  • After that, insert the following formula.
=D8-D14

Calculating Net Cash Flow in Excel

Here, in the formula, we subtracted the value of Cell D8 by Cell D14 to get the value of the Net Cash Flow of the company.

  • Next, press ENTER to get the value of Net Cash Flow.
  • Then, drag right the Fill Handle tool to AutoFill the formula for the rest of the cells.

  • Now, you will get all the values of the Net Cash Flow.

Calculating Net Cash Flow in Excel

  • Then, select Cell C16.
  • Afterward, insert the following formula.
=D5+D15

In the formula, we added Starting Balance and Net Cash Flow to get the value of the Closing Balance.

  • Now, press ENTER to get the value of Closing Balance.
  • After that, drag right the Fill Handle tool to AutoFill the formula for the rest of the cells.

Calculating Net Cash Flow in Excel

  • Then, formulas will be applied for the values of Closing Balance for January, February, and March.

  • Next, select Cell E5.
  • Now, insert the following formula.
=D16

Calculating Net Cash Flow in Excel

Here, we inserted the value of Cell D16 as the Starting Balance of February of the company.

  • Then, press ENTER to get the value of the Starting Balance of February.
  • Additionally, you will see that the values of Net Cash Flow and Closing Balance have been adjusted accordingly.

  • After that, select Cell F5.
  • Next, insert the following formula.
=E16

Calculating Net Cash Flow in Excel

Here, we inserted the value of Cell E16 as the Starting Balance of March of the company.

  • After that, press ENTER to get the value of the Starting Balance of March.
  • Similarly, you will see that the values of Net Cash Flow and Closing Balance have been adjusted accordingly.

Read More: How to Create Monthly Cash Flow Statement Format in Excel


Practice Section

In this section, we are giving you the dataset to practice on your own and learn to use these methods.

Practice Section


Conclusion

So, in this article, you will find a step-by-step way to calculate net cash flow in Excel. Use any of these ways to accomplish the result in this regard. Hope you find this article helpful and informative. Feel free to comment if something seems difficult to understand. Let us know any other approaches which we might have missed here. And, visit ExcelDemy for many more articles like this. Thank you!


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