Inve Blog · Topic
13 articles on cash flow.
Cash conversion cycle explained: the formula, how to read DSO, DIO and DPO, and why a negative cycle shows who funds growth — with real Indian examples.
Cumulative cash flow vs profit should match over a decade. Learn to run the cumulative CFO vs PAT test and tell a structural earnings leak from growth.
Learn to read a cash flow statement for Indian stocks: what CFO, CFI and CFF mean and why the +/-/- pattern reveals if a profitable company is short on cash.
Other income can quietly carry a company's PAT. A worked GMDC case — record FY26 profit on a one-off GST credit while operating profit fell — shows the test.
Spot working capital warning signs early: rising debtor days, inventory days and a climbing WC-to-sales ratio turn record profit into cash that never arrives.
The cash conversion cycle counts the days a business funds itself before customers pay. Why FMCG races and projects crawl, with HUL and L&T figures shown.
Profit is an opinion; cash is a fact. A beginner's guide to why a booked sale can quietly never arrive, plus the receivables signal that gives it away.
The dividend payout ratio shows how much of a year's profit a company pays out — the real test of whether a dividend is funded by earnings or quietly borrowed.
Free cash flow is operating cash minus capex — the cash owners actually keep. Why it's harder to fake than profit, shown on ITC and Power Grid FY25 figures.
What CWIP means and how to spot the capex trap: big projects that swell the balance sheet but never earn their interest. A real Indian case, read line by line.
A company can post a fat net profit while its core business loses money, propped up by treasury and one-off gains. How to spot the other-income trap fast.
Working capital explained: why a profitable company can still gasp for cash when money is frozen in inventory and unpaid bills, read on a real Indian EPC stock.
A rising PAT that is not backed by operating cash flow is a classic red flag. Learn how to read earnings quality and catch accounting sleight of hand.