Cash is king

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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 accounts 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.

Contrary opinions are explained on the pages for return of capital and cash flow and EBITDA. Not withstanding problems with the measurement standards of Income Statements derived from accrual accounting, they are a better measure of the growth of a business, or the increased value of the investment. There are even more problems with Cash than with Net Income.^{[neutrality disputed]}