Meaning & use
cash generation
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Meaning
noununcountablebusinessfinance
the process or amount of money a company or activity produces in cash, especially from its normal operations.
Grammar: Uncountable: use it with singular verbs, e.g. cash generation is improving.
Patterns
- strong cash generation
- cash generation from something
- improve cash generation
The company's strong cash generation allowed it to pay off its debts.
Analysts praised the firm's cash generation in the last quarter.
Good cash generation is essential for funding new projects.
Common combinations
- strong cash generation
- The business reported strong cash generation for the year.
- cash generation from operations
- Cash generation from operations was higher than expected.
- improve cash generation
- They cut costs to improve cash generation.
- cash generation capacity
- The company has significant cash generation capacity.
Synonyms and how they differ
- cash flow
- Cash flow is the movement of money in and out; cash generation focuses on the money produced, not the whole flow.
- profitability
- Profitability is about earning more than you spend on paper; cash generation is about actual cash received.
Word family
- generate verb
- To produce or create something, such as cash or income.
- generation noun
- The act of producing something, or a group of people born around the same time.
Commonly confused: cash generation or cash flow?
cash generation vs cash flow
Cash flow is the total money coming in and going out; cash generation is specifically the money produced by the business.
Practice
The company's ______ has been strong, so it can invest in new equipment.
Choose one answer.
Cash generation refers to the cash a company produces, which allows investment. Cash infusion means money put into a company from outside, not produced by it.
Make it your own
Write a sentence using “cash generation”, then check it and compare it with the examples above.