What can be inferred if a company's cash flow is consistently negative?

If a company's cash flow is consistently negative, it suggests that the company is spending more cash than it is generating, which raises concerns about its financial health and sustainability. When a company operates with negative cash flow over an extended period, it may indicate a struggle to cover operating expenses, pay debts, or invest in necessary capital assets. This situation can create significant challenges in meeting future obligations, as the company may need to rely on external financing or draw from reserves to continue its operations.

In contrast, options suggesting that a company is likely profitable or has strong investor support do not align with the implications of a consistently negative cash flow. Profitability generally corresponds with positive cash flow, and strong investor support typically indicates confidence in the company's ability to generate cash and sustain operations. While rapid expansion can lead to temporary cash flow deficits, it does not inherently result in a consistent negative cash flow without sound financial management.

Therefore, inferring that a company may struggle to meet future obligations is the most accurate conclusion regarding the consequences of a consistently negative cash flow.