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Sohrab Shaikh (SEBI RA)

19th Feb 2025 · SEBI-Registered Analyst

Cash Flow From Investing Activity (CFIA)

Cash Flow from Investing Activities (CFIA) is a crucial component of a company's cash flow statement. It represents the net cash inflows or outflows from investing activities, such as: Sources of Cash Inflows: 1. Sale of investments: Proceeds from the sale of investments, such as stocks, bonds, or real estate. 2. Sale of property, plant, and equipment (PP&E): Cash received from the sale of PP&E, such as buildings, machinery, or vehicles. 3. Collection of loans: Cash received from the collection of loans made to other companies or individuals. Uses of Cash Outflows: 1. Purchase of investments: Cash paid for investments, such as stocks, bonds, or real estate. 2. Purchase of PP&E: Cash paid for PP&E, such as buildings, machinery, or vehicles. 3. Loans made: Cash lent to other companies or individuals. 4. Acquisitions: Cash paid for acquiring other companies or businesses.

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