Final answer:
A negative operating cash flow can indicate financial trouble for a business.
Step-by-step explanation:
A negative operating cash flow can be concerning for a business.
Cash flow refers to the movement of money into and out of a business over a specific period of time. A negative operating cash flow means that the business is experiencing more cash outflow (expenses) than cash inflow (revenue). This can indicate that the business is not generating enough revenue to cover its expenses, which can be a sign of financial trouble.
For example, if a company consistently has negative operating cash flow, it may struggle to pay its bills, invest in growth opportunities, or meet its financial obligations. It may have to rely on external sources of financing, such as loans or investments, to stay afloat.