All companies should be expected to produce positive operating cash flows every year.

Question

Quizplus · Accepted Answer

While it is desirable for a company to have positive operating cash flows every year, it may not always be possible due to a variety of factors such as economic downturns, industry trends, and fluctuations in demand. Some companies may have negative operating cash flows in certain years but may still remain financially stable due to other sources of funding or assets.

All Companies Should Be Expected to Produce Positive Operating Cash