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Unfortunately, earnings are still a bad proxy for the cashflow available to shareholders.
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However, she warns: "But that might put them in a more vulnerable position as higher levels of debt along with higher interest costs might constrain their ability to repay the debt and reduce their available cashflow".
Even though the economy is now dominated by service companies, they continue to base lending decisions on the security available rather than cashflow.
Far from being hyper-rational actors, expertly analysing all available information and discounting future cashflows at the optimal rate, individual investors show psychological biases, such as being more willing to take profits than cut their losses.
For firms whose cashflow is being impacted by customers who simply don't pay up on time, there are financial solutions available that can tide them over.
"Businesses have been crying out for a solution that is available 24 hours a day, seven days a week, to solve relatively small, relatively short-term cashflow problems".
"Cashflow is reality.
Cashflow, strongly positive last year, has turned negative.
As cashflow improves, bosses return the cash.
Le cashflow is not enough, he declared.
The firm's cashflow has been weak.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com