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Impact of negative cash flows operating investing financing

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I am trying to better understand what it means when cash flow from operations, investing, or financing on the cash flow statement is negative? Is this bad or dangerous?

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Solution Summary

The impact of negative cash flows operating investing financing is examined.

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As a general rule, it is "bad" when operating cash flows is negative. Why? It means that you are not generating enough deposits/collections from customers to cover the operating payments due to employees and vendors. While a period of negative operating cash flow happens from time to time, especially ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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