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-   -   Cash Flow from operations (https://www.askmehelpdesk.com/showthread.php?t=32423)

  • Aug 23, 2006, 06:06 PM
    ecroft
    Cash Flow from operations
    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?
  • Aug 24, 2006, 04:28 PM
    CaptainForest
    Yes, it is possible.
  • Sep 3, 2008, 10:38 AM
    Jamminnie
    Is it possible for a company to have a positive cash flow in the same year it has a net lost?
  • Sep 3, 2008, 12:49 PM
    AdamUTsel
    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.

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