--- title: "Cash Flow from Financing: Why it Matters | Jirav" description: Financing Cash Flow helps investors and analysts evaluate a company's ability to fund its operations and growth using external sources of capital. --- ![](https://www.jirav.com/hs-fs/hubfs/Imported%20sitepage%20images/header-logo.png?width=98&name=header-logo.png) - [ Resources ](https://www.jirav.com/resources) - Menu / Resources - [Resource Center ](https://www.jirav.com/resources) Blogs and resources on all things finance, FP&A, and Jirav [Webinars ](https://www.jirav.com/webinars) Learn more about Jirav and FP&A from industry experts [Events ](https://www.jirav.com/events) See our upcoming calendar of events [Help Center ](https://help.jirav.com/) Guide on how to use Jirav - [ Company ](https://www.jirav.com/company) - Menu / Company - [About ](https://www.jirav.com/company) Learn about Jirav’s story and meet our leadership team [News Coverage ](https://www.jirav.com/news) See the latest news and highlights [Press ](https://www.jirav.com/press-releases) Recent company announcements and updates [Careers ](https://www.jirav.com/careers) View current job openings and learn how to join the Jirav Tower ![business_env](https://www.jirav.com/hubfs/business_env.svg) [ For Businesses ](https://www.jirav.com/reporting-planning-purpose-built-for-businesses) ![accounting_calc](https://www.jirav.com/hubfs/accounting_calc.svg) [ For Accounting & CFO Firms ](https://www.jirav.com/reporting-planning-purpose-built-for-accounting-cfo-advisory-firms) [ Get a Demo ](https://www.jirav.com/request-demo) [ Sign in ](https://app.jirav.com/) ![](https://www.jirav.com/hubfs/April2021/images/banner-shap.png) BLOG # Cash Flow from Financing: Why it Matters | Jirav [![](https://www.jirav.com/hubfs/April2021/images/fb-icon.png) ](http://www.facebook.com/share.php?u=https://www.jirav.com/standard-metrics-library/financing-cash-flow/) [![](https://www.jirav.com/hubfs/April2021/images/tw-icon.png) ](https://twitter.com/share?url=https://www.jirav.com/standard-metrics-library/financing-cash-flow/) [![](https://www.jirav.com/hubfs/April2021/images/in-icon.png) ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.jirav.com/standard-metrics-library/financing-cash-flow/&summary=&source=CeBIT) 1 minute read ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) ### What is Financing Cash Flow? Financing Cash Flow is the movement of funds in and out of a company that are related to its financing activities, like borrowing money, repaying debt, or issuing and buying back stock. This cash flow statement is divided into three categories: operating, investing, and financing activities. Essentially, Financing Cash Flow tracks the inflow and outflow of cash related to a company's financing decisions. ### Why Financing Cash Flow Is Important Financing Cash Flow helps investors and analysts evaluate a company's ability to fund its operations and growth using external sources of capital. If a company consistently has a negative Financing Cash Flow, it may be an indication that it is struggling to secure funding or that its debt levels are becoming unsustainable. On the other hand, a consistently positive Financing Cash Flow may indicate that a company has strong access to financing and is able to fund its growth without relying solely on profits generated from operations. ### How to Calculate Financing Cash Flow Financing Cash Flow is calculated by subtracting the cash inflows from the cash outflows related to financing activities during a given period.  Financing Cash Flow = Cash Inflows from Financing Activities - Cash Outflows from Financing Activities Cash inflows from financing activities may include things like proceeds from issuing debt or equity, while cash outflows may include things like paying down debt or buying back shares. By subtracting the cash outflows from the cash inflows, we arrive at the Financing Cash Flow for the period. ##### Jirav Published April 25, 2023 ###### Related topics - [Metrics library](https://www.jirav.com/standard-metrics-library/tag/metrics-library) - [Standard metrics library](https://www.jirav.com/standard-metrics-library/tag/standard-metrics-library) ## Related blog posts ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What Is Operating Cash Flow (OCF) + Formula | Jirav [ Read more ](https://www.jirav.com/standard-metrics-library/operating-cash-flow) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Cash Flow From Investing: Definition & Formula | Jirav [ Read more ](https://www.jirav.com/standard-metrics-library/investing-cash-flow) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What Is the Debt Ratio? 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[ Request a demo ](https://www.jirav.com/request-demo) ![](https://ws.zoominfo.com/pixel/GayWM7nWYSEC9X3nq2tn) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jirav", "url" : "https://www.jirav.com/standard-metrics-library/author/jirav" }, "dateModified" : "2023-04-25T14:56:51.873Z", "datePublished" : "2023-04-25T14:56:51.000Z", "headline" : "Cash Flow from Financing: Why it Matters | Jirav", "mainEntityOfPage" : { "@id" : "https://www.jirav.com/standard-metrics-library/financing-cash-flow", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.jirav.com/hubfs/Jirav%20Logo%20-%20176x75%20(small%20logo).png" }, "name" : "Jirav" } } ``` ```json { "@context" : "http://www.schema.org", "@type" : "AccountingService", "address" : { "@type" : "PostalAddress", "addressCountry" : "United States", "addressLocality" : "San Francisco", "addressRegion" : "CA", "postalCode" : "94102", "streetAddress" : "25 Taylor Street" }, "description" : "Jirav is a business planning software powering financial planning and analysis in the cloud with all-in-one forecasts, budgets, reports, and dashboards", "geo" : { "@type" : "GeoCoordinates", "latitude" : "37.782585", "longitude" : "-122.411255" }, "image" : "https://www.jirav.com/hs-fs/hubfs/Jirav_SitePageAssets_Feb2018/Jirav%20Logo%20for%20top%20nav.png?width=1200&height=510&name=Jirav%20Logo%20for%20top%20nav.png", "logo" : "https://www.jirav.com/hs-fs/hubfs/Jirav_SitePageAssets_Feb2018/Jirav%20Logo%20for%20top%20nav.png?width=1200&height=510&name=Jirav%20Logo%20for%20top%20nav.png", "name" : "Jirav", "openingHours" : "Mo, Tu, We, Th, Fr 09:00-17:00", "priceRange" : "$100/month-$750/month", "sameAs" : [ "https://www.instagram.com/gojirav/", "https://www.linkedin.com/company/jirav/", "https://twitter.com/GoJirav", "https://www.facebook.com/GoJirav/" ], "url" : "https://www.jirav.com/" } ```