What factors can drastically affect a company's cash flow?

Question

Quizplus · Accepted Answer

All of the factors mentioned above can significantly impact a company's cash flow. Increased competition can lead to lower sales and lower cash inflows. Economic swings, such as recession or inflation, can affect a company's revenue streams, expenses, and credit facilities, all of which can cause cash flow problems. Normal seasonal variations can impact cash flow due to fluctuations in demand and inventory stocking. Therefore, it is crucial for companies to have solid cash flow management strategies in place to mitigate the impact of these factors.

What Factors Can Drastically Affect a Company's Cash Flow