A company with healthy cash flows from operating activities is in a good position to repay its debts.

Question

Quizplus · Accepted Answer

If a company has healthy cash flows from operating activities, it means that it is generating enough cash to cover its day-to-day expenses and investments. This implies that the company has enough funds to use for debt repayment. Therefore, a company with healthy cash flows from operating activities is in a good position to repay its debts.

A Company with Healthy Cash Flows from Operating Activities Is