Rather than using liquidity or solvency ratios, some analysts use cash flow information to make liquidity judgments about a company.

Name: Rather than using liquidity or solvency ratios, some analysts use cash flow information to make liquidity judgments about a company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash flow information provides insights into a company's ability to generate cash to meet its short-term obligations, offering a direct measure of liquidity that some analysts prefer over traditional liquidity or solvency ratios.

Rather Than Using Liquidity or Solvency Ratios, Some Analysts Use