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In the previous post we have discussed the importance of cash. Cash is king not only for the fiscal health of a business but also when it comes to any investment analysis. Hence, all financial analyses evaluating future returns need to be based on cash flows. Sometimes, however, the financial data is only available as [...] The phrase “cash is king” is being used on many occasions in the finance world. Although I usually don’t like generalizations, I must say that this phrase is true in many circumstances. So, why is cash king? Cash is needed to pay bills, compensate employees, and make purchases. Hence, a business needs enough cash as an [...] |
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