Generally,when a company's net income and free cash flows trend in the same direction over time,earnings are believed to have higher quality.

Question

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When a company's net income and free cash flows trend in the same direction over time, it indicates that the company is generating cash in a sustainable way and is less likely to rely on non-operating activities to boost its earnings. This suggests that the company's earnings have a higher quality.

Generally,when a Company's Net Income and Free Cash Flows Trend