Why operating cash flow is important?

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Claunch 0 Comments

If you were asked to explain why operating cash flows are important, what answer would you give? What is the risk of having low operating cash flows?

1 Answer

score 0 · Answer 1 · 2012-12-02T16:12:47+00:00

Operating cash flow is very important because it depicts the ability of the company to generate cash from its day to day operations. In other words, it shows the ability of the company to make sales and turn this sales into cash while controlling the cash payments it makes.