Investors focused on top-and-bottom-line performance—important as they are—do so at the risk of neglecting another crucial metric for companies across industries: cash flow. Put simply, without adequate cash flow, it becomes difficult for any company to sustain its operations, let alone continue to grow its business through expansion, innovation, or acquisitions.
Cash flow is also a key consideration for companies that pay dividends, as a strong and steady influx of cash helps to maintain and grow dividend payments over time.
