Sales/maturities of investments?
I recently read that in the Cash Flow Statement, a negative amount in the NET CASH USED FOR INVESTING ACTIVITIES generally means a good thing as companies are spending money on reinvesting their money. But does a positive value in Sales/maturities of investments which is categorised under the investing activities consider a good thing as well?
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Luke Ho
17 Apr 2020
Founder and Director at CFX Money Maverick Pte Ltd
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Well yes. In fact, most people would ask the opposite - they would ask why the negative cash used for investing activities is justified by the company or community as a positive thing for you in the long run. THis article actually denotes that to some degree using banks as an example:
https://www.moneymaverickofficial.com/post/net-...
This is a technique utilized by most successful financial institutions and businesses, which incidentally you can actually mimic to some degree with your own investments and financial advisors if they can help you manage the risk of doing so.
If you're an individual shareholder, you just want to roughly know what they will do once the investment matures (what they will do with the money). Who knows, you might get a larger dividend later. :)
(and then you'd have to debate whether thats a good or bad thing depending on the company. Ugh)