Investing cash flow (CFI) reflects cash movements related to the purchase or sale of long-term assets, financial investments or fixed assets. It is normally negative, because growing companies spend cash on machinery, technology, property or stakes in other companies. However, a positive CFI may come from selling assets or reducing investments, which is not always good news if it means divestment or a lack of renewal. Analysing CFI helps you understand whether the company is investing to grow or simply liquidating resources to cover short-term cash needs.

• Purchases of fixed assets
• Sales of assets
• Financial investments

• Negative CFI → the company invests in growth or asset renewal (normal).
• Positive CFI → divestment or sale of assets; it may be one-off or due to a need for liquidity.

• CFO
• CFF
• Capex
• Free cash flow