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What does a negative value in Net CashFlow From Operating Activities mean?

While checking cash flow statement of LIC housing finance I see negative values in Operating Activities. Can someone help me understand as to what does it mean?

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Thanks a lot. However while checking cash flow of Canfin HF, the scenario is completely diff. Would you mind throwing light on the same? There Operating activity is positive while financing activity is negative.

I don’t track Canfin or any of the HFCs. It may be specific to Canfin. I couldn’t find the reason for its +ve operating cashflow after a casual glance through the Canfin thread on Valuepickr. You should definitely post a query in the thread.

@fabregas @rupeshtatiya Care to respond to this query?

@prasantrai @VIFL

Understanding cash flows and using them in triangulation remains one of my weak areas and I am working on it.
Regrading your query, There is an excellent article written by @drvijaymalik on cash flow statements, please find it below -

In my mind, CFO is a measure of working capital cycle of company (sales increasing but high receivable days), whether inventory is building (high net profit but all of that is in inventory/current assets), asset heavy business etc.

e.g. Let’s look at KRBL in which business model itself requires high levels of inventory -

You can see that for many years, even though company made profit at operating level, all the cash was invested in working capital (inventory). In such cases, not a lot of cash can be distributed to shareholders.

As per screener, In case of LIC, the negative operating cashflow seems to be due to high tax payment. May be some taxes from previous years or some miscellaneous taxes are being paid. It is also possible that screener data is incorrect. I have not looked at LIC HF AR.

The CFH CFO looks as expected for financial institution -

Regards,
Rupesh

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