Investing Cash Flow

Definition

Investing cash flow captures cash used for or generated from long-term investments (capex, acquisitions, asset sales).

Example

Buying $250k of servers shows as -$250k investing cash flow for the period.

How to use it

• Treat large capex as a runway event; it can shorten runway even if operating metrics are stable.
• Separate maintenance capex from growth capex for clearer planning.
• Review investing cash flow when planning hiring or marketing ramps.
• Track asset sales separately from operating performance to avoid noise.

Common mistakes

• Classifying operating expenses as investing cash flow to smooth burn.
• Ignoring one-time asset sales that temporarily inflate cash.
• Assuming investing cash flow is always negative (asset sales can reverse it).

Why this matters

This term matters because cash timing and risk are usually the difference between a plan that works on paper and a plan that survives. Use consistent definitions so decisions are comparable over time.

Practical checklist

• Write a 1-line definition for "Investing Cash Flow" that your team will use consistently.
• Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
• Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
• Use a calculator that references this term (e.g., Investment Decision Calculator) to sanity-check assumptions.
• Read the related guide (e.g., Runway and burn: gross vs net burn, working capital, and cash levers) for context and common pitfalls.

Where to use this on MetricKit