Netflix cash flow = negative 3 billion
Positive cash flow indicates that a
company's liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future financial challenges. Companies with strong financial flexibility can take advantage of profitable investments. They also fare better in downturns, by avoiding the costs of
financial distress. Even profitable companies can fail if their operating activities do not generate enough cash to stay liquid. This can happen if profits are tied up in outstanding
accounts receivable and overstocked inventory, or if a company spends too much on
capital expenditures.