What is a strong indicator of a financially healthy company?

A strong indicator of a financially healthy company is highest operating income, as it reflects the company's ability to generate profit from its core business operations. Operating income measures the earnings generated from regular operational activities, before tax and interest expenses, providing insights into the company's efficiency and performance. A higher operating income suggests that the company is managing its operational expenses effectively while maximizing revenue, which is crucial for sustainability and growth.

In contrast, while total assets can reflect the size of the company, they do not necessarily indicate financial health if the assets are not being effectively utilized to generate income. Similarly, having low liabilities might seem favorable, but it does not paint a complete picture of a company’s financial situation without considering how effectively it uses its resources to generate operating income. Lastly, the lowest net income is not a strong indicator of financial health; rather, it signifies potential issues in profitability. Therefore, operating income stands out as the key measure of a company's core financial health and operational efficiency.