Net Cash Used Provided by Financing Activities is a measure of the total cash flow into or out of a company in relation to its financing activities. In simpler terms, it shows how much cash a company has received from loans, investments, and other financing sources, or how much it has paid out in dividends, debt repayments, and other financing costs.
Net Cash Used Provided by Financing Activities is one of the key components in a company's cash flow statement, which provides an overview of a company's cash flows from its operating, investing, and financing activities.
The cash inflows in this context generally come from issuing equity or debt, while the outflows are typically from repaying debt, repurchasing equity, or paying dividends. This metric can be a crucial indicator of a company's financial health, revealing whether it is financing its operations primarily from debt, equity, or its own operating cash flows.
It's important to note that a negative value indicates a company is paying off debt or returning money to shareholders, while a positive value signifies the company is raising capital by selling shares or borrowing.
For Apple, positive net cash from financing activities may result from issuing debt or selling shares, while negative cash flow might be due to repaying debt, buying back shares, or paying dividends to shareholders.
For Tesla, positive net cash from financing activities could be driven by equity financing from issuing new shares or debt financing from loans or bonds, while negative cash flow might be due to repaying these loans or bonds.
For Amazon, cash inflows from financing activities may come from issuing debt or equity, while cash outflows may be due to repaying debt, buying back shares, or paying dividends. This would then result in the net cash used provided by financing activities.