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Ep 373. Fed Raised 75 bps, Inflation Persistence, and Value Stocks from Midcap Stock Screener

Focused Compounding

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Accounts Receivable Turns to Cash in Three Months or Less

The company had before COVID about two hundred million dollars in accounts receivable. The key thing when we calculate the enterprise value It does not count accounts receivable as part of the enterprise value. This is stuff that turns to cash in three months basically if You don't and that. If sales go back to where they were before Cash gets unlocked to the amount of three hundred fifty million because that actually gets converted in your cash flow statement.

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