A company with negative net income will also have negative operating cash flow.

Question

Quizplus · Accepted Answer

It is possible for a company with negative net income to have positive operating cash flow. Operating cash flow measures the cash generated or used in a company's daily operations, whereas net income takes into account non-cash expenses such as depreciation and amortization. Therefore, a company could have negative net income due to high non-cash expenses but still have positive operating cash flow if it is generating cash from its operations.

A Company with Negative Net Income Will Also Have Negative