Definition
Investing cash flow reflects capital expenditures, acquisitions, asset sales, and investment purchases/sales. It's typically negative for growing companies investing in expansion. Positive investing cash flow may indicate asset sales or divestitures.
Formula
Investing CF = Asset Sales - CapEx - Acquisitions - Investment Purchases
Example
A company spent $30M on capex, $50M on acquisitions, and received $10M from selling a division. Investing cash flow: -$70M (net cash outflow for investments).
FAQ
What is Investing Cash Flow?
Cash used for or generated from investments and asset purchases.
How do you calculate Investing Cash Flow?
A common formula for Investing Cash Flow is: Investing CF = Asset Sales - CapEx - Acquisitions - Investment Purchases
Why is Investing Cash Flow important?
Investing Cash Flow helps investors evaluate financial statements and make more informed decisions.