Cash Flow from Financing Activities

Cash Flow from Financing Activities

Cash flow that a company acquires from a financing round instead of from operations. That is, cash flow from financing activities is the net amount that a company receives from issuing stock and bonds. Generally speaking, shareholders prefer to see positive cash flow from financing activities, but a negative amount could mean that a company is buying back its own stock, which drives up the share price. It is calculated thus:

Cash flow from financing activities = Cash from stock and bonds - debt service on bonds - dividends paid to stockholders - Stock buybacks - called debt.
References in periodicals archive ?
Statement of Cash Flows January 1, 2012 through september 30, 2012 Operating Activities: Net Income $20,000 Plus Expenses Not Using Cash: Depreciation $10,000 Plus Increases/(Decreases) in Current Liabilities: Trade Payables $20,000 Other Payables ($4,000) Accrued Liabilities $2,000 Less Decreases/(Increases) in Current Assets other Than Cash: Accounts Receivable ($30,000) Inventory ($10,000) CASH FLOW FROM OPERATIONS $8,000 Investing Activities: Plus Sale of Equipment $25,000 Less Purchase of Equipment ($150,000) CASH FLOW FROM INVESTING ACTIVITIES ($125,000) Financing Activities: Plus Borrowing $150,000 Minus Repayment of Debt ($50,000) Minus Dividends ($10,000) CASH FLOW FROM FINANCING ACTIVITIES $90,000 NET CHANGE IN CASH ($27,000) BEGINNING CASH $50,000 ENDING CASH $23,000
Note that any acquisition of capital assets that is not paid for with cash but instead is financed from external sources would not typically be accounted for under cash flow from investing activities nor would the financing be accounted for under cash flow from financing activities.
76 Consolidated Cash Flows Three months ended December 31, 2007 2006 Cash Flow from Operating Activities 4,914 39,831 Cash Flow from Investing Activities (103,035) (92,793) Cash Flow from Financing Activities 126,243 65,862 Cash and Cash Equivalents at Period End 334,003 315,294 Three months ended December 31, 2007 2006 Cash Flow from Operating Activities 139,532 160,601 Cash Flow from Investing Activities (280,912) (213,101) Cash Flow from Financing Activities 145,993 65,325 Cash and Cash Equivalents at Period End 334,003 315,294
With respect to financing and investing cash flows, Livnat and Zarowin (1990) reported that disaggregation of net cash flow from financing activities (NCFF) improved the association with stock returns, while disaggregation of net cash flow from investing activities (NCFI) yielded no improvement.
Cash flow from financing activities is forecast to remain level with the previous fiscal year.
Galmed reported a positive cash flow from financing activities of $41.
31, 2006 2005 2005 Cash Flow from Operating Activities 1,006 (1,885) (603) Cash Flow from Investing Activities (2,820) 282 (3,202) Cash Flow from Financing Activities (721) (542) (567) Cash and Cash Equivalents at Period End 31,468 34,627 32,557
30, 2005 2004 2005 Cash Flow from Operating Activities (930) (52) 1,612 Cash Flow from Investing Activities 3,223 (53) (2,689) Cash Flow from Financing Activities (202) (96) 19 Cash and Cash Equivalents at Period End 13,280 12,226 11,186
Cash flow from financing activities increased to approximately EUR 28 million (2007: EUR 8.
H1 2006 cash flow from financing activities was SEK -548.
303 Cash flow from financing activities Addition to shareholders' equity 71 45 Proceeds from issuance of shares 598 - Dividend paid -3.
In the first six months of 1999, the Company's net decrease in cash flow from financing activities was NIS 14.