Ratios

in #religion6 years ago

What is the definition of EPS 5y CAGR %?
This figure represents the 5 year Compound annual growth rate (CAGR) of the company's diluted earnings per share (EPS).
What is the definition of FCF?
Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. Unlike earnings, it omits purely \paper only""" expenses"""""""""
Free Cash Flow per share should be compared with Earnings per Share in order to understand whether a company is able to turn its earnings into cash or not! Ultimately every company needs to make cash to survive and without free cash flow a company will have to go begging to shareholders or resort to borrowing. The best companies are 'cash machines' - you should look for companies that make more free cashflow than earnings.

N.B. Cashflow can be very 'lumpy' as capital expenditures are not consistent from year to year. Also growing companies may have to invest heavily ahead of cashflow to keep up with demand.
.

Sort:  

Warning! This user is on my black list, likely as a known plagiarist, spammer or ID thief. Please be cautious with this post!
If you believe this is an error, please chat with us in the #cheetah-appeals channel in our discord.

This user is on the @buildawhale blacklist for one or more of the following reasons:

  • Spam
  • Plagiarism
  • Scam or Fraud