Definition for : Financing cycle

Financing cycle is the counterpart to the Investment cycle and Business cycle. It covers the period from raising Financial resources to their repayment. This cycle includes capital increases in cash, the payment of dividends (i.e. payment out of the previous year's Net profit) and Share buy-backs, change in Net debt resulting from the repayment of (short-, medium- and long-term) borrowings, new borrowings, changes in Marketable securities (short-term investments) and changes in cash and cash equivalents.

(See Chapters Chapter 2 Cash Flows, Chapter 5 Walking through from earnings to cash flow and 1Chapter 2 Cash Flows of the Vernimmen)

To know more about it, look at what we have already written on this subject