Financial health is the measure of a company’s ability to meet its obligations, such as paying its bills and paying out dividends. It is determined by looking at factors including cash flow, liquidity ratios, debt management, profit margins, asset utilization, and working capital. A financially healthy company will have sufficient liquidity to meet its short-term needs while also having enough assets and available credit to cover its long-term financial obligations. This can provide businesses the security they need to invest in growth opportunities and succeed in their industries.