Respuesta :
Operating cash flow is sometimes seen as a more accurate indicator of a company's financial health for two key reasons, despite the fact that many investors favor net income:
- First, under GAAP, cash flow is more difficult to manipulate than net income.
- Second, a business that cannot earn cash over the long term is doomed because "cash is king."
Operating cash flow (OCF) is a company's lifeblood and possibly the most significant indicator investors have for assessing corporate health.
If investors examine a company's operating cash flow, they can steer clear of many disastrous investments. It's not difficult to do, but you'll need to because talking heads and analysts tend to focus on EPS all the time.
To learn more about operating cash flow click on the given link:
https://brainly.com/question/28185713
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