Positive cash flow crucial to survival of a company

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This is most common for companies that are growing at a faster phase. Reuters This is most common for companies that are growing at a faster phase. Reuters
SummaryCash flow is an important indicator of a company's financial health.

negative cash flow from investing activities generally indicates that the company is growth oriented

* Cash flow from financing activities : A positive net cash flow from financing activities indicates the the company raises money from investors and creditors to finance its growth

* Prospective investors can use the cash-flow statement to determine whether the company has adequate cash to expand operations and pay dividends

* The company can use the information in the cash-flow statement to measure the efficiency of operations

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