Explore jobs
Find specific jobs
Explore careers
Explore professions
Best companies
Explore companies
This question is about employer.
Why is free cash flow important?
Free cash flow is important because it is an indicator of a company's financial health. For both potential investors and financial analysts, a company with ample free cash flow poses less financial risk.
Typically, a company's free cash flow is used to pay off short-term financial obligations such as paying off a loan or purchasing equipment. Businesses have other ways of showing evidence of their financial viability such as inventory or purchase orders, but cash flow, or cash on hand, is a strong indication of a company's stability.
Potential investors look at a company's ability to pay off debt and potentially reinvest in their own expansion when considering partnerships. This indicator is also important to financial analysts who rate businesses and create forecasts based on earnings and future sales projections.
Choose from 10+ customizable resume templates
Zippia allows you to choose from different easy-to-use templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.
