Cash Flow From Financing

What is Cash Flow From Financing?

Cash flow from financing implies the amount of cash the business raises from or spends on finance-related activities.

A typical example of cash flow from financing is dividends payment. Many companies are paying out dividends to their investors as a reward for their shareholders. Dividends can act as a useful strategy for a company to reward and attract investors.

Another example of cash flow from financing is bond issuance. Many companies are issuing long-term bonds for investors to purchase. Both equities (i.e. stocks) and debt (i.e. bonds) are sources for a company to raise capital and increase their cash on hand.

The picture below shows the cash flow from the financing activities of Nvidia. The spreadsheet includes data from the fiscal year 2019 to 2021.