Description

Cash flow from financing is a line item on the cash flow statement and tracks the flow of cash between a company's owners, investors, and creditors.

Calculation

Cash Flow from Financing = Cash from issuing equity or debt - ( Dividends Paid + Repurchase of debt and equity)

Why its important

Cash flow from financing reports debt, equity, and dividends in order to understand how the net flow of funds is used to run a company.