: Look for consistent or growing profit distributed per share.
: The actual cash a business generates after capital expenditures. Robust FCF allows for dividends, debt repayment, and future growth. 2. Valuation: Avoiding Overpayment Evaluating Stocks | FINRA.org what to look out for when buying stocks
: A lower ratio suggests the company is less reliant on borrowing and less likely to struggle during economic downturns. Cash Flow Quality : : Look for consistent or growing profit distributed
: Measures how effectively a company uses shareholder capital to generate profit; a range of 10–20% is often considered healthy. what to look out for when buying stocks