How Does Investing Cash Flow Impact Business Health?
Investing cash flow has a significant impact on a company's overall financial health:
- Growth Potential: Positive investing activities often indicate growth potential, as the company is expanding its asset base. - Liquidity: Negative investing cash flow can affect liquidity if the company is investing heavily without immediate returns. - Financial Stability: Consistent negative investing cash flow may require external financing, impacting the company's financial stability through increased debt levels.