How to Calculate Net Change in Cash

How to Calculate Net Change in Cash From a Cash Flow Statement

By Jeremy Bowman – Updated Apr 30, 2025 at 10:23 PM

Key Points

Net change in cash is calculated by summing cash flows from operations, investments, and financing.
A positive net change indicates increased cash, vital for assessing financial health.
Monitoring this metric helps foresee potential bankruptcy or growth trends.

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Documents and a calculator sitting on a desk. — Image source: Getty Images.

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Profit and Loss Statement

Making sense of a P&L statement can help guide your investments. We show you how.

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.