Investing activities in a cash flow statement tell us a lot about a company’s future plans. Let’s break it down:
Capital Expenditures: When a company spends money on things like buildings or equipment, it usually means they are planning to grow. For example, if they spend $1 million on a new factory, they probably believe they will make more products and sell more.
Acquisitions: When a company buys another business, it often means they want to increase their presence in the market or offer more products.
R&D Investments: When a tech company puts money into research and development, it’s a sign they want to create new products and stay ahead of their competitors.
In the end, these actions show us how a company wants to build value for the future.
Investing activities in a cash flow statement tell us a lot about a company’s future plans. Let’s break it down:
Capital Expenditures: When a company spends money on things like buildings or equipment, it usually means they are planning to grow. For example, if they spend $1 million on a new factory, they probably believe they will make more products and sell more.
Acquisitions: When a company buys another business, it often means they want to increase their presence in the market or offer more products.
R&D Investments: When a tech company puts money into research and development, it’s a sign they want to create new products and stay ahead of their competitors.
In the end, these actions show us how a company wants to build value for the future.