Accounting / July 18, 2018 / Willow Mccoy
When analyzing a company's cash flow statement, it is important to consider each of the various sections that contribute to the overall change in its cash position. Negative cash flows are not always indicative of poor performance. Often, firms have negative overall cash flows for a period because of heavy investment expenditures.
Cash flow from investing activities is an item on the cash flow statement that reports the aggregate change in a company's cash position resulting from investment gains or losses and changes resulting from amounts spent on investments in capital assets, such as plant and equipment.
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