1️⃣ Operating Cash Flow (CFO)
Cash from core business activities.
✔️ Cash from sales
✔️ Payments to suppliers
✔️ Salaries & routine expenses
✔️ Working capital changes
▶️ Healthy business = Strong positive CFO
2️⃣ Investing Cash Flow (CFI)
Cash related to long-term assets & investments.
✔️ Buying/selling property, plant, equipment
✔️ Purchase/sale of investments
✔️ Capex for expansion
▶️ Negative CFI is normal when a company is expanding
3️⃣ Financing Cash Flow (CFF)
Cash from raising or repaying capital.
✔️ Loan taken or repaid
✔️ Shares issued or buyback
✔️ Dividends & interest paid
▶️ Negative CFF is healthy when debt is repaid or dividends are paid
🧾 Quick Summary:
- CFO = Cash from core business (should be positive)
- CFI = Cash from investments (negative is OK for growth)
- CFF = Cash from lenders/shareholders (negative means reducing debt)
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