Cash flow from Financing Activities (CFF)

Brief Definition

Cash flow from financing activities is a section of a company’s cash flow statement that shows the cash transactions related to funding the business. This includes cash inflows and outflows from transactions involving equity, debt, and dividends.

Further Explanation

Cash flow from financing activities is a section of a company’s cash flow statement that shows the cash transactions related to funding the business. This includes cash inflows and outflows from transactions involving equity, debt, and dividends. These activities reflect how a company finances its operations and growth through different sources of funding.

Example:
Issue of new equity: increase in financing cash flow
Repayment of equity (e.g. repurchase): decrease in financing cash flow
Payment of dividends: decrease in cash flow financing
Debt issuance: increase in cash flow financing
Repayment of debt: decrease in cash flow financing
Capital/finance lease payments: decrease in finance cash flows