What is Investing Cash Flow?
Investing cash flow is the section of the cash flow statement that reports cash spent on or received from long-term assets and investments, including property, equipment, intangibles, and securities.
How It Works
- Subtract cash used to acquire fixed assets, businesses, or investments.
- Add cash received from selling assets or investments.
- A consistently negative figure usually signals a business is expanding capacity.
Saudi Context
For Saudi industrial and real-estate companies executing Vision 2030 expansion, large negative investing cash flows are common — for example, when building new plants in NEOM, Riyadh, or the Eastern Province.
Example
A manufacturer buys equipment for SAR 8 million and sells an old building for SAR 2 million. Investing cash flow is -SAR 6 million.