how does net cash determine a company s financial health 
analyzing what activities contribute to positive or negative net cash is essential when using net cash for determining a company s financial health positive net cash can indicate that a business is healthy and functioning well but certain activities may result in a positive cash flow that may not reflect positively on a company s financial health the bottom linenet cash is calculated by subtracting a company s total liabilities from its total cash it is reported on a company s financial statements and is commonly used when evaluating a company s cash flows 