Cash flow is usually categorised as follows.
Operating cash flow
Cash flow from the business’s day to day operations. Usually presented as profits plus or minus differences between profit and operating cash flow. In the example we were working with previously, operating profit would be represented as 100 profit minus 25 increase in amounts owed by customers equals 75 operating cash flow.
Investing cash flow
Amounts related to investment in or sale of assets.
Financing cash flow
Proceeds of loans or other finance raising, repayment of loans or other finance, together with interest and other finance related costs.
Proceed with the finance for non-financial managers training course