A Company with a Low Level of Liabilities in Relation

question 131

True/False

A company with a low level of liabilities in relation to stockholders' equity is likely to have a very high debt-to-equity ratio.

---

Definitions:

Cash Flow from Assets

The total amount of money being transferred in and out of a company from its operational activities, investment activities, and financing activities, specifically related to its assets.

Cash Flow from Assets

Represents the total amount of money being transferred in and out of a company's assets, encompassing operating, investing, and financing cash flows.

Operating Cash Flow

The cash generated by a company's normal business operations, indicating whether a company can generate enough positive cash flow to maintain and grow its operations.

Net Working Capital

The financial contrast between a company's short-term assets and its short-term obligations.