What are the types of cash flow?
Under cash flow, there are three types. Cash Flows from Operations (CFO) represents direct cash flows from regular business operations, signaling the ability to cover expenses. Cash Flows from Investing (CFI) denotes cash movements from investment activities like asset purchases or sales. Negative CFI isn’t always negative. Cash Flows from Financing (CFF) indicates cash flow for capital funding through debt, equity, and dividends. Together, these metrics provide a comprehensive overview of a company’s financial health and operational efficiency through cash flow statements.
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