Education . Corporate Finance . 1 of 3 RupeeCase
Earnings up thirty
percent. Cash flow
flat. One is wrong.
+69%
Earnings per share, two years running
vs
+0%
Free cash flow over the same two years
A friend texted me a screenshot last week. A midcap whose EPS had grown thirty percent two years in a row. Looks like a compounder, he said. So I pulled the cash flow statement. The free cash flow had not moved a rupee.