When say your expenses are $400 a month but your income is only $350 a month that is -$50 every month so in that case you aren't getting a positive cash flow (which would be making more money than your expenses) So you must be getting a negative cash flow in which you are losing money and going into debt.
Negative cash flow does not necessarily means loss, and may be due only to a mismatch of expenditure and income.If there is any company that has to pay a bill but is not able to pay the bills and has to borrow then this is a case of negative cash flow.It means the company is spending more than it is earning.Companies take loan to fulfill negative cash flow.
For example : Company A has to pay $20000 as labor charges and has only $10879 in its account. We say the company has negative cash flow.
You can do 3 * 2 and 11 * 2 which would be 6:22 and is still equal to the ratio 3:11. Your explanation can be the when divided by 2 or the number you multiplied by, you would get the original ratio Examples: 6:22 9:33 12:44
