Question
A large NBFC reported an increase in operating profit
over the last year. However, its cash flow from operations was negative due to a sharp rise in receivables and a decrease in payables. Analysts are questioning the firm’s liquidity and sustainability. Which tool would be most relevant in identifying such a red flag?Solution
The Cash Flow Statement reveals actual cash movement and highlights discrepancies between accounting profit and real liquidity, exposing operational stress not visible in profit figures.
More Financial Statement Analysis Questions
Who among the following person attends the seminar event along with F in the same month?
- Seven boxes, F, G, H, I, J, K and L, are kept one above other, such that bottommost box is numbered as 1 and topmost box is numbered as 7. F is a prime num...
Which of the following is true regarding Aman?
How many people have birthdays before S?
E likes which of the following game?
Find the odd one out.
which of the following combination is true?
Six trucks with codes – A1Z, B2Y, C3X, D4W, E5V, and F6U are parked around a circular field facing away from the centre. B2Y is parked immediate left ...
Who lives in Flat – Z of floor – 2?
Which of the following does not belong to a group?
