What is cash neutral?

Answer 1

Cash neutral refers to a financial situation where a company's cash inflows are equal to its cash outflows over a specific period, resulting in no net cash gain or loss. This status indicates that the organization is effectively managing its cash flow, maintaining balance without generating excess funds or incurring deficits. Being cash neutral can be a strategic goal for businesses, especially during periods of investment or growth, as it allows for stability while pursuing other financial objectives.