Description

Negative cash flow refers to a situation where a company's cash outflows exceed its cash inflows over a specific period. This can indicate financial distress and may require management to take corrective actions to improve liquidity.

Interpreter Notes

Interpreters should be aware that 'flujo negativo de caja' is a formal term used in financial contexts. Common variants might include 'pérdida de flujo de caja' (colloquial) or 'flujo de caja negativo' (regional), but it is recommended to use the glossary term in formal discussions to avoid confusion.

Example Sentences

EN: The company reported a negative cash flow for the last quarter, raising concerns among investors.

ES: La empresa reportó un flujo negativo de caja en el último trimestre, lo que generó preocupaciones entre los inversionistas.

Common Interpreter Mistakes

Confusing with 'flujo de caja positivo'; misinterpreting as a general loss; mixing up terminology with unrelated financial terms.