Exploring the Correlation between Cash Flow and Financial Risk

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The financial cost and cash flows are significantly changing by quarter after quarter. The rise in cash flows, reduce the risk of financial management as the company can easily pay the financial costs. It is observed that on the other side when there is a downfall of cash flows Company have high financial management risks. According to the correlation analysis, the value of the correlation is 0.012 which is highly insignificant as the limit of the correlation value is 0.953. So there is no relation between profit and leverage. It is also found that financial cost has a positive of correlation with profit as this correlation is verified by Pearson correlation value 0.378. By these findings, it is clear that financial risk is not an important …show more content…

They are very diverse and are now operating in 185 countries. Their marketing campaigns have been very effective and people are aware of their brand name. A Workforce which is available to Etisalat is skilled and competent. Their market strategy and distribution channels are very competitive and expansion of their sales networks has allowed them to expand globally. They are not only a huge player in the domestic market, but also in foreign markets. All these attributes show that Etisalat’s operational and financial risks are lower than many …show more content…

They have diversified operations and it seems like they are not focused on as much on the quality of service as they should be. Some of the products are getting bad reviews such as Black Berry, DSL Modems and New Internet Connection Setup. Some areas have poor or no coverage as there are no boosters, especially areas with high building. Most of the service issues are rising because Etisalat has outsourced their operations to third parties and they are not committed to customer service. Customers complain about long waiting hours on centers and phone. This increases the operational risk for the company due to which they can experience loss of sales and in turn this can translate into financial

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