How to check the cash position of a business?
Martin King (Director) (81 Points)
07 June 2015Martin King (Director) (81 Points)
07 June 2015
Pushpa
(CS)
(21 Points)
Replied 08 June 2015
The Cash position of the company can be assessed by going through the free cash flow of the company. Loss and profit balance sheet may not provide right picture as the profit of the Company may be blocked in different assets which cannot be easily liquidated hence the best source is to go through the cash flow and find out how much is free cash flow.
By study balance sheet of a company. For further details one needs to check and compare with previous 2/3 years balance sheet. Look for sales growth, profit growth, Reserve, debt etc
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