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When the company has a net loss , Depreciation expense reduces a company's net income but payment of cash will not be done in the current period
Depreciation is always a positive cash flow factor because it is added back to operating income to get operating cash flow figures as it is a non cash expense item already charged to operating income. Also when we do capital budgeting decisions, we always treat depreciation as positive cash flow to arrive at the net cash flows from the project.
The reason is that mostly finance decisions are based on cash and cashflows rather than accouting profits, though we can use accounting profits as well in certain cases where true financial information is lacking.
Yes, Depreciation cost can be positive in Statement of Cash Flows ( IAS-7 ) while net income is negative.
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