Cash payments to repay the principal amount of debt are reported as a cash outflow in the investing activities section of the statement of cash flows.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Cash Outflow

The movement of money out of a business, typically as expenses or investments, resulting in a decrease in the company’s cash and cash equivalents.

Repay Principal

The process of paying back the original amount of money borrowed, not including interest, from a lender or creditor.