The hottest Cash Flow Substack posts right now

And their main takeaways
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Top Finance Topics

Before You Research Apple ($AAPL), Read This | PULSE Framework

Behavioral Value Investor • 126 implied HN points • 17 Mar 26
💰 Finance Cash Flow
  1. PULSE is a quick triage framework that uses five signals across all three financial statements to decide if a stock deserves deeper research, classifying names as not interesting, attractive at a high price, or attractive at an interesting price.
  2. Apple shows strong economic profits, strong underlying free cash flow, and almost no net debt, but its smoothed FCF yield (~3.5%) and EV cap rate (~3%) are low, meaning the market is pricing in high future growth.
  3. As a result, Apple is a high-quality company but not interesting at the current price, so it isn’t worth a deeper research effort right now.

PacBio To Pay Personal Genomics $23M+

ASeq Newsletter • 21 implied HN points • 16 Mar 26
💼 Business Cash Flow
  1. PacBio agreed to pay Personal Genomics just over $23 million to license patents, settling a lawsuit and removing a legal threat.
  2. Those payments are spread over four years, so PacBio doesn’t have to pay the full amount up front.
  3. PacBio has about $279M in cash and is burning roughly $159M a year, leaving only about a year and a half of runway.

Tesla & Netflix Earnings Reviews

Stock Market Nerd • 628 implied HN points • 25 Jan 24
💰 Finance Cash Flow
  1. Tesla missed revenue estimates and faces challenges with demand and margins
  2. Netflix exceeded revenue estimates and subscriber growth while focusing on ad-supported content and gaming
  3. Both companies have strong cash positions but face uncertainties in the future due to industry trends and market conditions

Earnings, Cash Flows and Free Cash Flows: A Primer

Musings on Markets • 1538 implied HN points • 31 Oct 22
💰 Finance Cash Flow
  1. Free cash flow (FCF) is a crucial metric that shows how much cash a company generates after covering its expenses and investments. It's often misused in finance, so it's important to know the real meaning behind it.
  2. When valuing a company, understanding its free cash flow helps in predicting future performance. Different methods are used based on whether you're looking at equity or the whole business.
  3. As companies age, their financial characteristics change. Younger companies usually have negative free cash flows while older, established companies tend to produce positive cash flows and return money to shareholders more consistently.

Infographics: The Shadow Cash Market

Concoda • 313 implied HN points • 28 May 25
💰 Finance Cash Flow
  1. The shadow cash market involves various types of private transactions that are not easily tracked or regulated. This means that a lot of money moves around without official oversight.
  2. Overall, the liquidity in this market can act like bonds, providing a kind of security and stability for those involved. It’s an alternative way to manage and access funds.
  3. Understanding this market is important as it has impacts on the economy. It helps people see how money flows in ways that aren’t always visible.
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Oxford Nanopore Full Year/Layoffs

ASeq Newsletter • 21 implied HN points • 12 Jan 26
💼 Business Cash Flow
  1. The full-year trading update largely matched the first-half results and showed no major surprises.
  2. Revenue grew about 12% from H1 to H2, but some of that appears seasonal or tied to one-off pricing and financing, so underlying growth is likely around that level.
  3. Cash on hand is down to £302 million, which at the current burn rate gives roughly a three-year runway.

Short Idea - Presto Automation (PRST-US)

Guasty Winds Investment Ideas • 157 implied HN points • 24 Mar 23
💰 Finance Cash Flow
  1. Presto Automation (PRST-US) is a loss-making, debt-ridden company that is struggling and may not survive without external financing.
  2. The company's core business of selling touch-screen tablets to restaurants is not profitable and faces challenges from cheaper alternatives like QR codes.
  3. Despite touting itself as an AI company, Presto's AI products are white-labeled and its financial situation is concerning, with high debt, low cash, and burning through cash at a fast rate.

What is EBITDA?

Concepts of Finance 🧠 • 299 implied HN points • 16 Mar 23
💰 Finance Cash Flow
  1. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It's a way to see how much cash a company makes from its regular activities, without debt and accounting effects.
  2. To calculate EBITDA, you add net income, taxes, interest, depreciation, and amortisation. This helps give a clearer picture of a company's financial health.
  3. Companies like EBITDA because it shows how well they're doing without the impact of financing and other expenses. It's a key metric when looking at profits or selling the business.

Death to Revenue Multiples: Long Live the DCF!

Equal Ventures • 59 implied HN points • 14 Jun 23
💰 Finance Cash Flow
  1. Revenue multiples have been traditionally used for valuations in the tech world, but they are proving to be ineffective in determining the true long-term value of businesses.
  2. Companies shifting focus from forecasting future cash flow to revenue growth have faced challenges, as revenue multiples don't necessarily reflect future profitability, leading to discrepancies in valuation.
  3. As competition accelerates in the tech industry, companies with strong market captivity and efficient growth strategies are prioritizing developing competitive advantages and generating long-term free cash flow over chasing revenue multiples.

DCF Myth 1: If you have a D(discount rate) and a CF (cash flow), you have a DCF!

Musings on Markets • 0 implied HN points • 23 Feb 15
💰 Finance Cash Flow
  1. You can't calculate a DCF just with a discount rate and cash flow. It needs to be done carefully, considering many factors for accurate results.
  2. It's important that everything in a DCF is consistent, like using the same currency and type of cash flows. If things don’t line up, the result won't make sense.
  3. A good DCF should tell a convincing story about the business’s future, matching numbers with real expectations and market conditions.

The Bonfire of Venture Capital: The Good, Bad and Ugly Side of Cash Burn!

Musings on Markets • 0 implied HN points • 19 Aug 16
💼 Business Cash Flow
  1. Cash burn isn't always a bad thing. It's common for startups to spend more cash than they earn while they focus on growth.
  2. There are risks with high cash burn, especially if a company cannot secure new funding. This can lead to serious financial trouble.
  3. Investors should look at the reasons behind cash burn. Understanding a company’s business model and management is key to deciding if cash burn is manageable.

January 2017 Data Update 5: A Taxing Year Ahead?

Musings on Markets • 0 implied HN points • 25 Jan 17
💰 Finance Cash Flow
  1. Taxes greatly impact a business's value because they affect cash flows after taxes and the cost of capital. Companies must consider their tax burden when planning finances.
  2. The U.S. has a high marginal tax rate, and its tax policies can lead to situations like trapped cash, where companies hold large amounts of unremitted foreign income to avoid hefty taxes.
  3. Changes in tax law can create winners and losers among companies, depending on how the new regulations affect their effective tax rates and financial structures. This could shift where and how companies choose to operate.

Myth 4.3: The D cannot change (over time) in a DCF

Musings on Markets • 0 implied HN points • 04 Nov 16
💰 Finance Cash Flow
  1. Discount rates in a DCF can change over time, so don't think you need to stick with one forever. It's important to adjust them based on the company's growth and risks.
  2. Adjusting discount rates makes valuations more accurate, especially for young or transitioning companies. Big changes in these firms mean their risk should be reflected in the discount rate.
  3. To estimate changing costs of capital, begin with the current rate and make adjustments based on planned changes in the company's debt and business mix, moving towards stable growth if the company matures.

Sequential vs. Parallel projects on a small team

The Daily Developer • 0 implied HN points • 18 Feb 24
💼 Business Cash Flow
  1. In a small team, running projects concurrently decreases execution risk and provides more learning opportunities.
  2. Running projects sequentially keeps cash burn lower but increases the risks associated with failure.
  3. Insurance companies diversify to reduce risk, similar to the concept of running parallel projects on a small team.

Myth 5.5: The Terminal Value ate my DCF!

Musings on Markets • 0 implied HN points • 30 Nov 16
💰 Finance Cash Flow
  1. A high terminal value in a DCF isn't a flaw; it's typical for stock valuations. Most investor returns come from price appreciation, making terminal value a large part of the overall valuation.
  2. Just because the terminal value is prominent doesn't mean your growth assumptions are unimportant. In fact, those assumptions critically impact your terminal value.
  3. When evaluating a company, especially a high growth one, don't ignore the early cash flows or growth period. They're essential in calculating a reliable terminal value.