The cash flow statement is divided into three parts: operating cash flow, investing cash flow, and financing cash flow. Take TSMC (2330) as an example: year operating cash flow investing cash flow financing cash flow free cash flow Net cash flow for the period 2018Q1 160,725,918 -73,459,190 -57,627,226 87,266,728 29,639,502 Operating cash flow: TSMC's Q1 operating cash flow was positive, indicating that the semiconductor products they sold this quarter made money, and this "money" is cash that was wasted, not a check that can be cashed after a year.
Investment cash flow: TSMC is mainly engaged in the semiconductor manufacturing industry, which is a capital and technology-intensive photo retouching service industry. Therefore, investment expenditures on plant equipment and technology research and development are usually greater than investment income, and investment cash flow is negative.
Cash flow for financing: Since semiconductor is an industry that requires a lot of capital, in addition to its own money, TSMC will also borrow money from the outside world, and the cash flow for financing is positive; when dividends are distributed to shareholders or debt repayment, the cash flow for financing is negative. Compared with the same quarter last year, TSMC's fundraising cash flow in Q1 2018 was more than five times higher, because it repaid more than 50 million corporate bonds in this quarter. Net cash flow for the current period (= operating cash fl