Financing activities
Financing activities form the third section of the cash flow statement, showing cash exchanges between the company and its capital providers — new share issues, borrowings, dividend payments and debt repayments.
FrameworkCash flow statement
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A firm raises €50,000 by issuing shares and €40,000 from new borrowings, then repays €20,000 of debt principal and pays €15,000 in dividends. Netting these four items gives net cash from financing activities of €55,000 — the amount the section adds to the period's overall change in cash, alongside operating and investing activities.
Where it fits
SubjectFinancial AccountingCoreTopicThe Financial StatementsCore