What is cashflow from financing?
Cash Flow from Financing is the cash flow that a company generates from its borrowings or from the sale or offering of new shares to the public. It is the third of three sections that can be found in a company’s quarterly and annual Cash Flow Statements. When a company borrows money or sells stock to expand its operations that activity contributes cashflow to the business. In most cases that financing activity does not reflect the health of the basic business. Similarly, if you borrow $10 from mom to buy more lemons for your lemonade stand, that contributes more cash to your enterprise, but that cash does not come from actual lemonade sales.
