For Immediate Release
Chicago, IL – November 29, 2017 - Stocks in this week’s article SORL Auto Parts, Inc. SORL, Century Casinos, Inc. CNTY, POSCO PKX and Columbus McKinnon Corporation CMCO.
4 Stocks with Swelling Cash Flows to Boost Your Portfolio
Cash is most indispensable to any company. It gives a company the flexibility to make decisions, chase potential investments and run its growth engine.
Obviously, investors flock to companies that earn profits, but even a profitable business can succumb to failure if its cash flow is uneven and eventually file for bankruptcy. However, a company’s resilience can be effectively judged by evaluating its efficiency in generating cash flows, as cash not only guards a company from market mayhem but also indicates that profits are being channelized in the right direction. It is, in fact, the indicator of its true financial health.
To understand efficiency, one needs to consider a company’s net cash flow. In any business, cash moves in and out. It is net cash flow that explains how much money the company is actually making. Experiencing a positive cash flow denotes an increase in the company’s liquid assets. This provides the means to meet debt obligations, shell out for expenses, reinvest in business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.
However, positive cash flow alone is not sufficient to predict a company’s future growth. Consistent growth can only be achieved by a company when this positive cash flow is increasing because this improvement indicates management’s efficiency in regulating its cash movements and lesser dependency on external financing sources for running its business.
As a result, while picking stocks, go beyond profits and make sure to look for companies with dependable and increasing cash flows.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/284221/4-stocks-with-swelling-cash-flows-to-boost-your-portfolio
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Century Casinos, Inc. (CNTY) : Free Stock Analysis Report
SORL Auto Parts, Inc. (SORL) : Free Stock Analysis Report
Columbus McKinnon Corporation (CMCO) : Free Stock Analysis Report
POSCO (PKX) : Free Stock Analysis Report
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