Cash flow statement
Interest Paid
Shows interest actually paid in cash during the period. It helps compare accrued financing expense with the real liquidity outflow.
Interest Paid
interestPaid · Cash flow statement
- Definition
- Shows interest actually paid in cash during the period. It helps compare accrued financing expense with the real liquidity outflow.
- Uses
- Useful for separating accounting profit from real cash generation and tracking reinvestment, acquisitions, debt, dividends and buybacks. Especially important in mature businesses, cyclicals, roll-ups and high-capex companies. It can mislead through working-capital timing, irregular capex, refinancing or M&A. Cross-check net income, EBITDA, maintenance capex and net debt.
