Financial flexibility is crucial for several reasons:
Adaptability: Businesses with greater financial flexibility can swiftly adapt to market changes, such as shifts in consumer demand or economic fluctuations. Risk Management: It helps in managing risks by providing a cushion against unforeseen expenses or revenue shortfalls. Investment Opportunities: Companies with financial flexibility can seize investment opportunities that may arise unexpectedly. Long-term Stability: It contributes to the long-term stability and sustainability of the business by ensuring that it can weather economic downturns.