Cash Flow From Investing Activities

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DEFINITION of 'Cash Flow From Investing Activities'

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. Why should I dig further if I find a company has positive cash flow from investing ...

    A positive cash flow from investing activities could signal that a company is in financial trouble and is selling off its ... Read Full Answer >>
  2. Is it wise for a company to have heavy cash flow investing activities outside of ...

    It is only wise for a company to have heavy cash flow from investing activities outside of capital expenditures if that company ... Read Full Answer >>
  3. How should I evaluate a company with negative cash flow investing activities?

    A company with a negative cash flow from investing activities should be evaluated on the sources and uses of cash under its ... Read Full Answer >>
  4. How can I use cash flow investing activities to determine if a company is growing?

    It is possible to use a company's cash flow from investing activities to determine if that company is growing by looking ... Read Full Answer >>
  5. What is the purpose of drawing up a cash flow statement?

    The purpose of drawing up a cash flow statement is to see a company's sources of cash and uses of cash, over a specified ... Read Full Answer >>
  6. What are some examples of cash flow from operating activities?

    Cash flows from operating activities is a section of the cash flow statement that explains the sources and uses of cash from ... Read Full Answer >>
  7. Is it possible for a company to have a positive cash flow and a negative net income?

    This situation may seem a bit counter-intuitive at first, but it is actually quite common and not too difficult to understand. ... Read Full Answer >>

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