Whenever there is no positive correlation between EBITDA and FCF, always trust FCF.

Comparing any two entities, may it be two different sportsmen like Michael Jordan and Lionel Messi or two different companies like Apple and GE, is always very difficult because there is no common structure to compare them. It is comparatively a bit easier to compare sportsmen or companies within the same category as comparing Ronaldo …

Continue reading Whenever there is no positive correlation between EBITDA and FCF, always trust FCF.

Gross Profit vs. Operating Profit vs. Net Profit

At the core, profit is earnings minus expenses. However, we want to bifurcate and come up with various variations of profit to understand the business better. Therefore, at the first level, we have gross profit. Gross Profit is nothing but 'Sales - COGS' This shows how much profit are we earning without considering our expenses and …

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