Cash Flow from Financing Activities

What is Cash Flow from Financing Activities (CFF)?

Cash flow from financing activities (CFF) is a metric that can help investors understand a company’s net cash flows and overall financial strength. This number considers a business’s debts, equities and dividends, and is typically listed as a section in a company’s cash flow statement.

Here’s how to calculate CFF:

CFF = cash inflows from issuing debt or equity - (cash paid as dividends + repurchase of debt and equity)

Related terms

30-Day and 13-Week Operating Cash Burn

30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit.

Accounts Payable Days

Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.

Accounts Payable Turnover

Accounts payable turnover explains how many times a business pays its creditors in a set timespan. Companies can use this metric to measure their short-term liquidity.

Accounts Receivable Turnover

The accounts receivable turnover ratio (or debtor turnover ratio) allows businesses to evaluate their debt collection efficiency.

Advanced Reporting

Advanced reporting refers to a sophisticated approach to generating and analyzing reports using advanced tools, techniques, and technologies.

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is a key metric used by subscription-based businesses to track and measure their predictable, recurring revenue streams over a one-year period.