Calculate Cash Flow From Finance

Finance Cash Flow Formula:

\[ \text{Finance CF} = \text{Debt Issued} - \text{Debt Paid} - \text{Dividends} \]

Cash Flow From Finance:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is Cash Flow From Finance?

Cash flow from financing activities (CFF) shows the net flows of cash used to fund the company and its capital. It includes transactions involving debt, equity, and dividends.

2. How Does the Calculator Work?

The calculator uses the finance cash flow formula:

\[ \text{Finance CF} = \text{Debt Issued} - \text{Debt Paid} - \text{Dividends} \]

Where:

\( \text{Debt Issued} \) — New debt raised during the period
\( \text{Debt Paid} \) — Principal repayments made
\( \text{Dividends} \) — Dividends paid to shareholders

Explanation: Positive finance cash flow means the company is raising more capital than it's paying out, while negative means it's paying more to investors and creditors than it's raising.

3. Importance of Finance Cash Flow

Details: Finance cash flow helps investors understand how a company funds its operations and growth, and how it returns value to shareholders through dividends and share buybacks.

4. Using the Calculator

Tips: Enter all values in the same currency. Debt issued and debt paid should reflect the principal amounts only (excluding interest). Dividends should include all cash distributions to shareholders.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between finance CF and operating CF?
A: Operating CF comes from core business operations, while finance CF comes from funding activities like loans and equity transactions.

Q2: Why would finance CF be negative?
A: Negative finance CF typically occurs when a company is paying down debt, paying dividends, or buying back shares more than it's raising new capital.

Q3: Should stock buybacks be included?
A: Yes, stock repurchases would be included in the "debt paid" section if they're considered a return of capital to investors.

Q4: How often should finance CF be calculated?
A: Typically calculated quarterly for financial reporting and annually for comprehensive analysis.

Q5: What's a good finance CF value?
A: There's no "good" value - it depends on company strategy. Growth companies often have positive finance CF (raising capital), while mature companies may have negative (returning capital).