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Financing cash flow

Cash raised from or returned to funders: borrowing and repaying debt, issuing shares, buying back shares and paying dividends.

This section shows who is paying for the gap between what the business generates and what it spends. Persistently positive financing cash flow at a company with negative free-cash-flow means growth is being funded by outsiders, not by the product.

It is also where capital-allocation becomes visible: the relative size of buybacks, dividend payments and debt repayment tells you what management actually prioritises rather than what it says on the earnings-call.

Example: Northwind Tools shows negative $51M: $28M of dividends, $40M of share repurchases, $18M of debt repayment, offset by $35M raised from a new term loan drawdown.

Related: capital-allocation, dividend, cash-flow-statement, total-debt, share-count-trend

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