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Unformatted text preview: Expenditure more than the company has earned. Negative cash flow is not always a bad thing, although there are adverse reasons like ill working capital management or even loss in a particular working year. Negative cash flow may be due to a high capital expenditure which is not a bad thing. A firm capitalizes on this capital expenditure in later years of operations. This capital expenditure helps a company is grow. Moreover, if a company is expansion using its internal funds , it is good for the existing shareholders because their holding is not diluted....
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- Winter '10