oboloo Glossary

Investing Cash Flows

oboloo Glossary

Investing Cash Flows

Investing cash flows refer to the use of funds from a business’s operations that are used to acquire assets- such as property, equipment, and stocks- as part of a long-term growth strategy. In other words, investing cash flows are the amount of money generated by a company’s activities that is reinvested in its future. By investing these funds proactively, businesses can increase their profitability, improve capital efficiency, and reduce costs associated with borrowing funds. In short, investing cash flows allow businesses to plan ahead for success!