The only time a company experiences a negative cash flow from operations is when they are in trouble.

Question

Quizplus · Accepted Answer

A company can experience negative cash flow from operations for various reasons, such as investing heavily in growth, paying off debt, or making large capital expenditures. It does not necessarily mean they are in trouble, as long as they have a solid plan to generate positive cash flow in the future.

The Only Time a Company Experiences a Negative Cash Flow