![]() 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, having a positive cash flow merely does not secure a company's future growth. While in any business cash moves in and out, it is net cash flow that explains how much money a company is actually generating.If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. Therefore, one must go beyond profit numbers for prudent investment and look at a company's efficiency in generating cash flows, as cash shields from market mayhem and indicates that profits are being channelized in the right direction.Moreover, analyzing a company's cash-generating efficiency holds more relevance in the current context with uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the pandemic.To figure out this efficiency, one needs to consider a company's net cash flow. ![]() However, a profitable business can also succumb to failure if its cash flow is uneven and eventually has to file for bankruptcy. are worth buying.Investors often flock to companies that earn profits. Thus, it can safely be called the lifeblood of any business.In this regard, stocks like PDC Energy, Inc., Encore Wire Corp., Tecnoglass Inc. This is because cash offers the flexibility to make decisions, the means to make investments and the fuel to run a company's growth engine. ULH.4 Buy-Rated Stocks to Pick for Impressive Cash Flow GrowthIf achieving profit is a company's goal, then having a healthy cash flow is highly essential for its existence, development and success. TGLS and Universal Logistics Holdings, Inc. For Immediate ReleaseChicago, IL – J– Stocks in this week’s article are JPDC Energy, Inc.
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