Cash Flows Explained

Cash Flows Explained

If you're investing for a period of fewer than 5 years, please check the following data for the last 3 years.
If you're investing for a period of more than 5 years, please check the following data for the last 5 years.
The amount which comes to the company is treated as positive, and which goes from the pocket of the company is treated as negative. 

For investing in a good company for the long term:

a. The operating cash flow should be positive, as it is the amount the company receives from daily operations. 
b. The financing cash flow should be negative, as it is the cash paid or received from issuing or borrowing of funds.
c. The investing cash flow should be negative, as it is the cash used for investing in long term assets, equipment. 

The net cash flow should be positive as the Sum of operations should exceed the one of financing and investing. 

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