Financing Activities

Financing activities refer to how a company raises or repays money to fund its operations and growth. This includes methods like issuing shares to investors, borrowing through loans, or repaying borrowed funds. These activities are essential for managing a company's capital structure and ensuring it has enough resources to support its business goals. In financial statements, they highlight the inflows and outflows of cash related to debt and equity financing, giving insight into how the company finances itself beyond its daily operations.