A measure of a company's financial flexibility is
A) cash debt coverage.
B) current cash debt coverage.
C) free cash flow.
D) cash debt coverage and free cash flow.

Question

Quizplus · Accepted Answer

Cash debt coverage and free cash flow are measures of a company's financial flexibility. Cash debt coverage assesses the ability of a company's operating cash flow to cover its debts, indicating financial stability and flexibility. Free cash flow measures how much cash a company generates after accounting for capital expenditures, reflecting its ability to pursue opportunities that enhance shareholder value.

A Measure of a Company's Financial Flexibility Is