The cash flow situation where a business has utilised more cash than it takes in results in what we call negative cash flow.
*We know that investments are made with the expectation of earning extra profit. However, excessive investments ultimately drain away from the fund and give a negative cash flow to the company.
*Overheads are the additional expenses that are involved with the production and operations of a company.
*The analysis and calculation of negative cash flow are simple. Although the mathematical formula gives a practical value of cash flow