View Full Version : Cash Flow from operations
ecroft
Aug 23, 2006, 06:06 PM
Is it possible for a company to have a positive cash flow from operations in the same year that it has a net loss or to have a negative cash flow from operations in the same year that it has a profit?
CaptainForest
Aug 24, 2006, 04:28 PM
Yes, it is possible.
Jamminnie
Sep 3, 2008, 10:38 AM
Is it possible for a company to have a positive cash flow in the same year it has a net lost?
AdamUTsel
Sep 3, 2008, 12:49 PM
Yes, there are three componenets to the cash flow, remember.
1. Operations (which takes into account Net Income/Loss)
2. Investing
3. Financing
A company with high net losses yet a positive cash flow are likely financed completely and are a tell-all sign to investors that this company is either in the early stages of development or has a very weak future.