What Type of Strategy Should a Company Use to Manage

question 127

Essay

What type of strategy should a company use to manage its cash cows?

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Definitions:

Liquidity

The facility of making an asset cash without changing its market value.

Operating Cash Flow

The cash generated from the normal operations of a business, reflecting how much cash is produced by the business's core operations.

Depreciation Expense

The distribution of a physical asset's cost over its expected lifespan for tax and accounting reasons.

Net Working Capital

The gap between a firm's existing assets and its short-term obligations, showcasing its liquidity and ability to run efficiently in the near term.