free cash flow

EBITDA versus Free Cash Flow

EBITDA versus Free Cash Flow Examples

By / 14 June 2020 / How to invest

Previously we explained Warren Buffett’s Owner Earnings which focuses on the free cash flow. EBITDA can give a dangerous perspective of the financial health of a company. In this article we look at a couple of examples of businesses to see if they generate cash. Multiple sources are used to explain this crucial factor for correctly assessing the financial health of a company.

Owner earnings

Warren Buffett and Owner Earnings

By / 14 June 2020 / How to invest

Owner earnings is introduced by Warren Buffett in 1986. Owner earnings is the cash that is available for the shareholders after capital expenditures. Here we see why this is so important and that many great businesses focus on available cash.