What Does Positive or Negative Financing Cash Flow Indicate?
A positive financing cash flow suggests that a company is raising capital, either through equity or debt issuance. This can be a sign of growth and expansion. Conversely, a negative financing cash flow indicates that the company is repaying debt, buying back shares, or paying dividends. While this can be healthy for maintaining a strong balance sheet, excessive negative cash flow could also mean the company is depleting its financial reserves.