Question: Since going into the streaming business (and reducing the DVD business), Netflix regularly had negative cash flow (until 2020) from operations, yet during the years

Since going into the streaming business (and reducing the DVD business), Netflix regularly had negative cash flow (until 2020) from operations, yet during the years (2017-2020) the stock returned 55%, 39%, 21% and 67% annually. Is operating cash flow always important to a businesses' success? In what situations (company-specific, economic) is it not that important? Use Netflix as an example, or other public companies.

What other companies when operating cash flow may not be very important.

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Operating cash flow is a measure of a companys ability to generate cash from its operations and it is generally considered an important indicator of a ... View full answer

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