7/26/2020· Accounting
How To Identify A Company's Financial Distress By Using Cash Flow Statements
By: Michael Pakter
It is essential that creditors, managers, and shareholders - as well as the attorneys who advise them - timely identify and respond to signs of a company’s financial distress. Financial distress, according to Investopedia, “is a condition in which a company or individual cannot generate revenue or income because it is unable to meet or cannot pay its financial obligations