Cash Flow From Investing

What is Cash Flow From Investing?

Cash flow from investing activities includes items such as the purchase of real estate (and other physical assets), investment in long-term assets, investment in securities and derivatives (such as stocks, bonds, and warrants …), or sales of assets.

Picture source: https://corporatefinanceinstitute.com/resources/knowledge/accounting/cash-flow-from-investing-activities/

Although a negative cash flow from investing could sound like an unhealthy signal, it might not always be the case. For example, if the company had purchased assets over the past fiscal year for higher productivity, it is likely that the company maintains a negative cash flow from investing.

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