Company Cash and Profit Generation | Wall Street Oasis

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Let’s suppose I’m a manufacturer and have a process, a warehouse, all that. If I had an option to increase the prices by 10% or keeping my prices the same. What would be a better way to increase profits, increasing price or sales volume? 41:30-46:35

Going back to the example of a distributer with a very low operating margin, and a lot of net working capital, and it experiences rapid sales grow; all else being constant, what is the company more likely to lose money or make money, in that scenario? 28:42 – 31:02

Let’s take a business that has significant negative working capital, and it were to experience rapid sales declines, what are some of the moving parts in determining if there will be more or less cash generation? 31:03 – 33:12

Say a company is a retailer and they order products a season ahead, and when the products arrive and the season’s sales are not going well, what is the impact of the net working capital adjustment? 19:24 – 20:27

If you think about a company’s total cash generation, in a year ignoring the capital structure, what are some other important components to look at in addition to EBITDA? 16:01 – 23:50

I’m looking at a business that is renting equipment to companies. They buy these big trucks and it shows up in the financials as Cap-X… So they rent these big trucks as their business to earn a rental income stream from its customers. In traditional EBITDA calculations, why is EBITDA – in this situation – a bad approximation of operating cash flow? 48:20 – 53:16

I’m in a business that is selling a product … I have the opportunity to either: increase prices and sell the same amount of product units that leads to a 10% increase in profits, or to increase volume and keep prices the same. What would you choose as a way to achieve the 10% increase? 53:25 – 57:53

If I have a financial assets that earns 10% a year, how many years before the investment doubles? 22:26 – 23:00

Let's say you just inherited a million dollars and you're considering an investment, building a new gas station. Tell me how you would go about evaluating whether or not you would invest a million dollars. 9:44-16:01