4 ms·
Cash flows aren't exclusively tied to operational activities. You can lose tons of money on the operational side, but make up for it in investments and debt, th
by bwh2 17y ago
Cash flows aren't exclusively tied to operational activities. You can lose tons of money on the operational side, but make up for it in investments and debt, thus making your company cash flow positive. I'm not saying that's the case with Facebook, but it's entirely possible that on the operational side they are losing money but still remaining cash flow positive.
- RyanGWU82 17y agoThe term "cash flow positive" generally refers to cash flow from operations. A company that closes a round of financing would end the year with more cash in the bank, but no one would call such a company "cash flow positive."