when net cash is used in relation to stock investing it sometimes refers to an abbreviated version of the term net cash per share investors can use net cash to help determine whether a company s stock is an attractive investment 
net cash vs net cash flownet cash flow refers to either the gain or loss of funds over a period after all debts have been paid when a business has a surplus of cash after paying all its operating costs it is said to have a positive cash flow if the company is paying more for obligations and liabilities than what it earns through operations it is said to have a negative cash flow a negative cash flow does not mean a company is unable to pay all of its obligations it just means that the amount of cash received for that period was insufficient to cover its obligations for that same time period if other savings vehicles are liquidated to meet the obligation or additional debt is accrued that does not involve the receipt of a lump sum deposit then a company can meet all of its obligations while maintaining a negative cash flow analyzing what activities contribute to positive or negative net cash is essential when using net cash as a barometer for determining the financial health of a company positive net cash from events such as increased profits from sales or reduced obligations can be indicative of a healthy and well functioning firm however certain activities may result in a positive cash flow that may not reflect positively on a company s financial health such as money received as a result of incurring a new debt or activities associated with a lump sum loan deposit 