Generally, positive free cash flow is considered a good thing. After all, it is from this source

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Generally, positive free cash flow is considered a good thing. After all, it is from this source that lenders and shareholders receive their returns. Under what circumstances, if any, might a negative FCF also be seen as a good thing? And if FCF is negative, aren't the providers of capital (lenders and shareholders) going to demand immediate corrective action?
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Financial Reporting And Analysis

ISBN: 9781260247848

8th Edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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