If Cash Flow from Financing is Running the Show | Houston We Have Issues

What is Cash Flow from Financing? Cash Flow from Financing is the third section of the Cash Flow Statement. It tells you how a business is financing itself through the issuance of shares or debt. Watch out for companies that use financing to operate. Healthy companies run off of Cash from Operations. They make their money from the sale of goods or services. Many freshly IPO'd companies run their operations from Cash from Financing, which is a warning sign.

The Cash Flow Statement is one of the most important statements a business has to describe how healthy it is. The Cash Flow Statement shows you the health of a business.

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