How Companies Raise and Return Capital
How Companies Raise and Return Capital
Financing activities include transactions involving debt and equity financing. These activities explain how companies obtain capital and return value to creditors and shareholders.
Note
Repeated reliance on financing cash inflows to fund ongoing operating deficits may indicate that operations are not generating sufficient cash, though financing inflows are normal for growing or highly leveraged companies and do not by themselves signal problems.
Summary
Financing activities explain changes in a company's capital structure and financing strategy.