Fixed Capital and Working Asset Financing
Cash is necessary for the survival of any business. It is used to pay bills and obligations as well as buy assets. Most companies run into trouble when they lock up too much capital in illiquid long term investment structures and have too many short-term liabilities that are approaching maturity.
The opposite is a company that has plenty of long dated fixed-rate financing from before interest hikes and investments that are highly liquid and convertible to cash at will.
Whenever purchasing assets, it is important to remember that assets reduce cash and the purchase of too many assets may cause the company to be unable to repay debt and obligations.
Investment in assets is a necessary evil.