Cash Flow From Investing Activities

What is 'Cash Flow From Investing Activities'

Cash flow from investing activities is an item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent on investments in capital assets such as plant and equipment.

BREAKING DOWN 'Cash Flow From Investing Activities'

When analyzing a company's cash flow statement, it is important to consider each of the various sections which contribute to the overall change in cash position. In many cases, a firm may have negative overall cash flow for a given quarter, but if the company can generate positive cash flow from its business operations, the negative overall cash flow may be a result of heavy investment expenditures, which is not necessarily a bad thing.

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RELATED FAQS
  1. How do I determine cash flow investing activities for a publicly traded company?

    Learn how cash flows from investing activities are calculated, which sources and uses of cash are included in this section, ... Read Answer >>
  2. Why should I dig further if I find a company has positive cash flow from investing ...

    Understand why it's important to dig into a company's sources and uses of cash if it has a positive cash flow from investing ... Read Answer >>
  3. What's the difference between free cash flow and operating cash flow?

    Learn the difference between free cash flow and operating cash flow. Explore how analysts use earnings and cash flow when ... Read Answer >>
  4. What will examining a company's cash flow from operating activities tell an investor?

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  5. What is the purpose of drawing up a cash flow statement?

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