When analyzing investing cash flow, consider the following:
1. Capital Expenditure Trends: Consistent investment in capital expenditures is generally a positive sign, indicating that the company is investing in its future capabilities. 2. Asset Sales: Frequent asset sales may be a red flag, suggesting that the company is selling off its assets to generate cash. 3. Return on Investment: Evaluate whether past investments have yielded satisfactory returns. This can be gauged through metrics such as ROI (Return on Investment) and ROA (Return on Assets).