Typically,the more volatile the company's trend in operating cash flows,the higher the operating risk of the company.

Question

Quizplus · Accepted Answer

This statement is true. Operating cash flows are an important indicator of a company's financial health and stability. If a company's operating cash flows are highly volatile, it suggests that the company may have difficulty generating consistent cash flows in the future, which increases its operating risk.

Typically,the More Volatile the Company's Trend in Operating Cash Flows,the