Why Truly Profitable Companies Generate Excessive Free Cash Flow

Traditional value metrics like book value convey how much capital a company has invested in the business. But the sign of a truly profitable business is that it generates more free cash flow (FCF) than it needs. FCF is the cash a business has left over after it has paid its capital expenditures. Historically, a [...] The post Why Truly Profitable Companies Generate Excessive Free Cash Flow appeared first on ETF Trends .