orang3eph

In your last sentence, did you mean CFF is unaffected ? Because for me it looks like it's the CFF which is unaffected (net balance = 0) but just a difference in the timing as you said

Beatnik Wrote:
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> In the period when you refinance, CFO will
> decrease, but CFF will increase. In a later period
> when you will repay your debt - your CFF will
> decrease accordingly, but CFO won't be affected by
> this transaction (now its a financial, not
> operating CF). So now your CFO will be inflated,
> because your cash outflow is in CFF instead of
> CFO.
>
>
> If you look at the net effect of the two periods,
> CFO will be unaffected - it's all about timing of
> CFO.