If operating cash flow is positive and growing from quarter to quarter, it can predict business success, particularly if the company is still profit negative.
A stagnation or shrinkage in operating cash flow can be very detrimental to the stock value. We recommend considering selling the stock if the operating cash flow turns negative.
If operating cash flow is growing, free cash flow can become positive and even grow, depending on the company's expenses of course. Then stock buybacks or dividends might be paid in order to reward investors.
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