Financial flexibility refers to a company's ability to adapt its financial strategies to changing conditions and opportunities, ensuring it can effectively respond to unexpected events or capitalize on growth prospects. This adaptability is often reflected in a company's liquidity position and access to capital, allowing it to manage risks and make investment decisions without being overly constrained by financial obligations. It is closely tied to aspects like cash flow management and the generation of free cash flow, which play a critical role in maintaining this flexibility.
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