Two key indicators of a company’s financial health
I find one of the best indicators of a company’s health is its ability to convert a majority of its accountings earnings to operating cash. Due to nature of accrual accounting and revenue recognition policies, statutory numbers can over or understate actual future profitability. It is a lot harder for a company to manipulate an operating cash number, which makes it a key number for investors to focus on. Free cash is also a very useful metric to watch as it demonstrates the company’s ability to finance growth and reinvestment within its current capital structure.
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Wilson Asset Management has a track record of making a difference for shareholders and the community for 27 years and is the investment manager for nine LICs and two unlisted funds. Wilson Asset Management invests over $6 billion on behalf of more than 130,000 retail investors. Wilson Asset Management created and is the lead supporter of the Future Generation companies, the first LICs to deliver both investment and social returns.
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Wilson Asset Management
Wilson Asset Management has a track record of making a difference for shareholders and the community for 27 years and is the investment manager for nine LICs and two unlisted funds. Wilson Asset Management invests over $6 billion on behalf of more...
Wilson Asset Management
Wilson Asset Management has a track record of making a difference for shareholders and the community for 27 years and is the investment manager for nine LICs and two unlisted funds. Wilson Asset Management invests over $6 billion on behalf of more...
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