Cash Flow from Investing
Also called CFI · Investing Activities
Cash Flow from Investing refers to the section the Cash Flow Statement that shows the cash spent on and received from investments in long-term assets.
Some examples:
- PP&E
- Securities
- Acquisitions
Why Cash Flow from Investing matters in investment banking interviews
This section is where CapEx shows up, which makes it directly relevant to free cash flow. A company with growing revenue but enormous investing outflows is a very different investment than one that converts profit straight into cash.