Comments on: Cash Flow or Profit Growth?

By: Ujjal

Ujjal — Sun, 25 Jan 2009 10:19:07 +0000

Yes. Thats right. If a business chases cash flow and cash generation, the profits will automatically happen – you wont need to chase and search for profits, unlike what most of us do all the time.

By: Irene

Irene — Sun, 25 Jan 2009 09:56:33 +0000

your observations on cash flow or profit growth
is thought provoking even for a non finance person like me.
I have read your views a couple of times and have managed to get the essence of it.
you have established that chasing just profit growth is red herring, that is something that distracts you from the real goal.Have I got it right?
for me its quite radical and thus interesting!

By: Arindam

Arindam — Fri, 23 Jan 2009 22:21:49 +0000

That is content! Good start, and I am sure you will be making some impact on the lives of us mere mortals, specially with your financial expertise. Look forward to the next post.

By: Bhaskar

Bhaskar — Fri, 23 Jan 2009 07:49:42 +0000

Good article. Close to my heart. Very real. Will wait for next post on 27th.

By: Ujjal

Ujjal — Fri, 23 Jan 2009 06:37:42 +0000

Hello Sada,

Yes you are right – a combination of Cash Flow and Profit (please note that I put cash flow first) would be a good option. But it is possible to eliminate profit and replace it with Adjusted Free Cash Flow in all profitability indicators.
I will write a post next week elaborating on this and with examples of course.
Well – for my next topic, please check on Tuesday 27th.
Ujjal