Best of Money Clinic: Investment Masterclass: Stuart Kirk has ‘skin in the game’
Money Clinic with Claer Barrett
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How to Invest in High Cash Flow Companies
In general, companies that spend money on big lumpy things like factories or machines have poor cash flow metrics. Companies with excellent cash flow tend to be ones where the money comes through the door quickly. And you know if they have a lot of debt, they can service that debt very easily because there's a huge amount of cash in their coffers. You can invest in companies with more debt if they have more cash whereas a company with big spending commitments should have less debt.
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