In regards to the question and reply below, would you agree or disagree? Why?

QUESTION:

What could a financial manager look at to determine whether his company is successful or in distress? Give an example of a success or distress in today's business world.

RESPONSE:

To determine whether a company is successful or in distress, there are several ways financial managers can do so. A company's cash flow should be the first thing the financial manager looks at. Cash flow dips do occur at certain times for companies, but cash flow can be short at times as well. The debt-to-cash ratio is important to health organizations. The company's strength and distress can both contribute to taking away its debt. The fact that companies have debt is a positive thing. However, too much debt can also be bad for a company since it cannot be repaid, resulting in financial hardship. As well as helping with revenue, debt can also be used to grow a business. Organizations can benefit from having short-term and long-term debt. One example would be Peleton, There have been four rounds of layoffs at Peloton, a fitness-tracking company. With deeper integration and access to Apple Watch data, the company could benefit. As inflation increases, consumers are changing how they spend money and what they prioritize. Strong leadership may be able to turn around most of these companies.