Investors who want to know the amount of cash a company has available for new opportunities,such as expanding into a new sales region,should analyze the company's ________.

Question

Quizplus · Accepted Answer

Free cash flow is the cash a company generates after accounting for its capital expenditures. It represents the cash available for the company to use for new opportunities, such as expanding into a new sales region. Net cash flow from investing activities only shows the cash inflows and outflows related to investment activities, not necessarily the cash available for new opportunities. Acid ratio measures a company's short-term liquidity and ability to pay off its current liabilities, which is not directly related to the question. Earnings per share measures a company's profitability, but does not directly indicate the amount of cash available.

Investors Who Want to Know the Amount of Cash a Company