If a company's net cash flow from operations is consistently higher than net income, this could be a red flag that the company is in trouble.

Question

Quizplus · Accepted Answer

A higher net cash flow from operations compared to net income is generally seen as a positive sign as it indicates that the company is generating strong cash flow from its operations. Therefore, it is not a red flag that the company is in trouble.

If a Company's Net Cash Flow from Operations Is Consistently