Fundamental Glossary / Cash Flow Metrics
Investing Cash Flow
Cash spent on, or received from, long-term assets and investments.
Formula
Purchases of plant, intangibles, and investments are outflows. Sales of those assets and interest or dividends received are inflows, depending on the accounting policy.
What it means
Investing cash flow is usually negative for a company that is building capacity. A positive figure means asset sales exceeded new investment.
It is not a measure of operating health. A firm in harvest mode sells assets and looks "positive" here while the franchise shrinks.
How to read it
Separate maintenance and growth spending when the company discloses them. A large outflow that builds a plant with contracted offtake is different from a large outflow for an unrelated acquisition.
What to watch
Loans given to related parties sometimes sit in investing cash flow. They are not capex. They are a use of cash that may not come back.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.