Cash is king is an expression sometimes used in analyzing businesses; it refers to the importance of cash flow in the overall fiscal health of the business. The phrase has sometimes appeared in Motley Fool articles and commentaries. For example, if a company has a large amount of account receivables, its balance sheet will give the appearance that the company is increasing equity, but the company can still be short on cash with which to make purchases, including paying wages to workers for labor.
External link
Fool on the Hill - Cash is King (http://www.fool.com/news/foth/2000/foth001121.htm) - Motley Fool opinion article stressing the importance of examining cash flow statements.
Example Usage of Cash
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