Financing cash flow
Net cash from debt, equity, dividends and repurchases.
Worked example · a round-number company
Financing cash flow$1.0B÷Revenue$5.0B=Share of revenue20.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↕Neither higher nor lower is better. Shows how the company raises or returns capital.
Keep in mind
- Positive financing cash flow can fund operating losses and is not operating income.