What does it mean when cash flow from operations,investing activities, financial

Question

What does it mean when cash flow from operations,investing activities, financial activities on a company's cash flow statement is negative? Is this bad news? Is it dangerous? What does it mean when cash flow from operations,investing activities, financial activities on a company's cash flow statement is negative? Is this bad news? Is it dangerous? What does it mean when cash flow from operations,investing activities, financial activities on a company's cash flow statement is negative? Is this bad news? Is it dangerous?

Explanation / Answer

Negative Cash Flows from Operating activities mean Operating Inflows are Less than Operating Outflows, this is dangerous as it means the Company is not doing well and it could have a direct impact on Company revenues, or it could mean Company Accounting Recievables may go bad either ways this is bad news.

Negative Cash Flows from Financing and Investing Activities dont always mean there is a danger, It means that the company may have either Incurred some capital Expenditures for Expansion of Business or The company may have paid off its Shareholders or its Long term Liabilities.

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