Profit But Negative Cash Flow
Ghassan Ghanem, financial Director, Kuwait
I believe that this company is having a weak treasury management
as the negative cash flows highlights this fact.
Another cause could be is that the company is over investing
a lot of its available funds in current as well as fixed assets.
Or, the cash outflows for debt service
could be one of the reasons.
It could be a mix of the above
Anyway, the ultimate reason could be disclosed upon analyzing the financial statements.