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The Earnings Illusion: How Working Capital Exposes Cash-Burning Companies
A company can post record net income on paper while silently draining its checking account to zero. Mainstream financial media fixates on Wall Street's favorite metric—Earnings Per Share (EPS)—but the true operational health of a business lies in its day-to-day cash flow engine. In this episode, Stephen and Andrew break down the mechanics of Changes in Working Capital to expose how inventory bloat, uncollected revenue, and stretched supplier payments can turn an apparent growth story into a dangerous value trap.
What You Will Learn
Why record earnings can be a lie: How accrual accounting…
The skinny
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