When cash flow is temporarily depressed due to strikes, litigation, warranty claims, or other one-time events, it is generally safe to assume that cash flow will recover in the near term.

Question

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Temporary events such as strikes, litigation, or warranty claims usually do not have a long-term impact on cash flow. As they are resolved, cash flow is likely to improve in the near future.

When Cash Flow Is Temporarily Depressed Due to Strikes, Litigation