Statement of Cash Flows
CNBC discusses Netflix’s potential for growth despite their enormous cash outflows. This video provides a good example of operating cash outflows, which for Netflix includes cash used on producing, acquiring, and licensing video content. Netflix also provides an interesting case in which a company has continued to grow while consistently reporting negative operating cash flows.
MoviePass CEO discusses cash flows. This video provides a good overall discussion of the importance of cash flow to investors. Further, they discuss how MoviePass has offset negative operating cash flows by issuing more stock (a cash inflow from financing).
The owner of Faded Royalty, a small business in New York City, talks about how he needs help with cash flows to keep his business afloat. While the owner says his business generated $25,000 to $30,000 in profit, most of his cash is tied up in inventory. This provides a good example of a business that has had success and earned profits, but is struggling to properly time cash inflows and outflows.