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Question: Several financial ratios can be reviewed to gauge a company's overall financial health and to judge the likelihood that the company will continue as a viable business. For example, if I wanted to assess the health of a company, I would choose the Net Cash Flow. I would choose the net cash flow because it is one of the effective and solid areas that the investors and shareholders would use to measure or assess the ability of a company to generate value. So healthy Net Cash Flow shows that the business is running successfully.
Can you give other examples of a financial measure that you would use to assess the health of a company?
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