Ten warning signs are already sitting in your cash flow statement.
Most CEOs miss every one.

Ten warning signs.
Most CEOs miss every one.

A field guide to the signals that separate a business quietly running out of cash from one that's actually healthy.

• One-Off Boosts to Operating Cash Flow — litigation settlements, tax refunds, and restructuring adjustments flattering the number.
• Extreme Working Capital Swings — unexplained moves in receivables, inventory, or payables.
• Profit Without Cash — positive net income next to negative operating cash flow.
• CapEx Without Payoff — heavy spending with no matching revenue growth.
• Funding Operations With Capital Raises — covering cash gaps with debt or equity, repeatedly.
• Debt-Funded Buybacks — propping up EPS by borrowing to repurchase shares.
• Dividends During Cash Strain — paying out while operating cash flow deteriorates.
• Selling Assets to Generate Cash — a distress signal, not a strategy.
• Negative Free Cash Flow, Positive Profit — can't fund itself without outside help.
• A Growing Restricted Cash Balance — covenant limits or obligations not yet disclosed.