Cash Flow - Cash Flow from Operating, Investing and Financing Activities - Episode 10

It is key to understand cash flow when analysing a company and in order to do this, it should be split up into cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. Cash flow from operating activities looks at cash earns from the core business operations. Cash flow from investing activities looks at cash spent on things like acquisitions and capital expenditures. Cash flow from financing activities focuses on the funding of the company such as the issuing and retirement of debt, paying dividends to shareholders and buying-back stock. This video also looks at free cash flow as a very important metric to consider.