A low-credit-risk company generates operating cash flows substantially in excess of what are required to sustain its business activities.

Question

Quizplus · Accepted Answer

A low-credit-risk company has a strong ability to generate cash flows, which are sufficient to cover their business activities and also potentially invest in growth opportunities or return cash to shareholders. This is typically reflected in their credit rating and financial stability, making them attractive to lenders and investors.

A Low-Credit-Risk Company Generates Operating Cash Flows Substantially in Excess