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Why Is Cash Flow Important

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Why is cash flow important?


Definitions:

Trading Debt Securities

Buying and selling debt instruments, like bonds, in financial markets with the aim of profiting from price fluctuations.

Current Assets

Current assets are the resources a company owns that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle, whichever is longer.

Return on Total Assets

A financial ratio that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profits.

Profit Margin

A financial metric used to assess a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.

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