Why Free Cash Flow Better Determines Profitability Than Earnings

While earnings have long been the yardstick for determining a company’s profitability, they can also be misleading. After all, the bankruptcies of Enron and WorldCom in the early 2000s demonstrated that strong GAAP earnings don’t necessarily mean a company is sustainably profitable. A survey of 400 CFOs conducted in 2014 showed that the respondents believed [...] The post Why Free Cash Flow Better Determines Profitability Than Earnings appeared first on ETF Trends .