Sometimes, negative cash flow means that your business is losing money. Other times, negative cash flow reflects poor timing of income and expenses. When that happens, you don 't have cash on hand to cover expenses. You can 't reinvest cash into your business when you have negative cash flow..
Related posts to negative cash flows
Financing and Investing. When operational cash flow is negative, a company must generate positive cash flow from its financing or investing activities. A company generates financing cash flow comes from obtaining new debt, selling stock, retiring debt, or paying dividends..
Situation where the cash outflows during a period are higher than the cash inflows during the same period. Negative cash flow does not necessarily means loss, and may be due only to a mismatch of expenditure and income..
Understand how a negative cash flow from investing activities should be evaluated. Learn the sources and uses of cash in a company's investing activities..
When a company spends more than it receives during a set period of time, typically a quarter, the company is said to have a negative cash flow. This is often viewed as an indicator of financial ill health by people who are assessing companies to determine whether or not to invest in the company..