Two of the most important figures in a company’s financial statements are its cash and debt balances. Both have a big influence on how we view its financial performance and the value of its shares. Yet sometimes, the figures on a balance sheet can mislead us. Investors can also treat cash and debt balances in the wrong way and mislead themselves into thinking a company is better or cheaper than it really is. I take a closer look at how you might avoid these pitfalls.
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