Investing term

What is Cash from investing (CFI)?

Cash spent on (or received from) long-term investments — capex, acquisitions, securities.

Cash from investing (CFI) is the cash flow section covering long-term investment activity — capital expenditures, acquisitions, and buying or selling securities and businesses. It's usually negative for a growing company, because building and buying assets costs cash. Read alongside operating cash flow, it shows how much of the cash a business generates is being plowed back into growth.

For example

A company spending $400M on new equipment and $100M on an acquisition reports −$500M of cash from investing — heavy reinvestment in its future.

Cash from investing (CFI) is taught hands-on in Stage 14 — Reading Financial Statements.

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Related terms

Accounts receivable (A/R)Money customers owe the company for goods or services already delivered but not yet paid.AccrualsAccounting entries that record revenue or expense before cash actually moves.Annual reportThe yearly disclosure that includes audited financials, MD&A, and footnotes — the primary source for serious investors.Balance sheetThe 'photo' statement — what the company owns, what it owes, and what's left for owners, on a single date.
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