Cash Flows from Investing Activities

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Accounting

Finance

| Contributor:

Valentina

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Definition

It involves cash flows from the sale or purchase of property, plant and equipment. Along with the sale or purchase of securities (such as stock and bonds) from other companies, and any loan repayment or lending.

Example

Suppose your company is in the banking sector and it believes that due to the Covid-19 crisis pharma companies will me more valuable in the future. Your company decides to profit from this movement and decides to buy shares of Pfizer. This activity will be considered as a cash flow from investing activities.

Video

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Source and advanced materials

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

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Cash Flows from Investing Activities

Definition

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