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17 results for “revenue quality”
Concept3 mentions across episodes
revenue quality
But once you have that type of visibility and you have an appreciation for what that looks like over the long term, that is where the big c word compounding comes into play. And here, Alistair lays it out in terms of index. It's a free cash flow mach
30:46 / 31:53
from transcript30:46 – 31:53
It was tied to oil and gas. It was just cyclical, generate lots of cash, but it just wasn't something that made sense from a growth standpoint. So I think, to me, that's where they've kind of run into issues in the past is sometimes overemphasizing c
36:03 / 37:12
from transcript36:03 – 37:12
can extend the long term growth runway or just position the business to have stronger growth in the long term. Just lastly, on free cash flow and capital allocation. Free cash flow defined as operating cash flow less capex is distorted by the credit
1:00:03 / 1:01:04
from transcript1:00:03 – 1:01:04
Every day, CEOs face tough decisions as they do their best to navigate fierce competition and economic conditions that are nearly always in a state of flux. To succeed in this cutthroat, ever shifting climate, CEOs only have five choices for how to d
1:12:05 / 1:13:09
from transcript1:12:05 – 1:13:09
I think periodically, what's happened this is more historical, is that you see that they can acquire businesses that generate lots of cash but don't have a ton of growth. The cash flow generation is a really important part of what they do. And if you
35:18 / 36:27
from transcript35:18 – 36:27
...revenue, that's gonna give you a big delta. So if I'm willing to pay 15 times cash flow for a given growth rate, a 20% margin business is three times revenues. A 50% margin business is seven and a half times revenue. I think the markets more or less
1:09:42 / 1:10:54
from transcript1:09:42 – 1:10:54
...so of revenue, that's generating nearly 900,000,000 in gross profit and about a $145,000,000 of EBITDA. On a free cash flow basis, they're generating about $300,000,000 of free cash flow. That includes some interest revenue, so without interest, it's
58:29 / 59:40
from transcript58:29 – 59:40
And then just thinking about how much of this is converting into free cash flow, can you talk a little bit about that in terms of earnings conversion, any unique free cash flow dynamics with the business, none immediately come to mind, and then we co
23:55 / 25:01
from transcript23:55 – 25:01
The correlation between free cash flow and dividend payments has diminished. Even companies that do pay dividends typically distribute a much lower percentage of their free cash flow than we see in other regions. Indeed, many US companies consider a
1:47:18 / 1:48:28
from transcript1:47:18 – 1:48:28
Transitioning a little bit to the management of cash flows, balance sheet, inventory, I think of distributor. I think of a lot of inventory being able to serve the entire market. How does that impact the financials of the business, whether it's conve
36:04 / 37:17
from transcript36:04 – 37:17
...of revenue, that's gonna give you a big delta. So if I'm willing to pay 15 times cash flow for a given growth rate, a 20% margin business is three times revenues. A 50% margin business is seven and a half times revenue. I think the markets more or le
1:08:56 / 1:10:18
from transcript1:08:56 – 1:10:18
...a revenue multiple. And the third is what's called your weighted average cost of capital, which is to say, if you look at the next twenty to thirty years of earnings and you wanna figure out what that is worth today, you have to discount all of these
4:29 / 5:33
from transcript4:29 – 5:33
...and the quality of the management team is strong. It's hard to overstate how meaningful that can be. And I know there's famous quotes that we wanna find businesses that are so great an idiot could operate them.
33:02 / 34:07
from transcript33:02 – 34:07
That is a top priority. It's also investing in the Salesforce and, of course, these technology initiatives. But after these investments, the priority is returning cash to shareholders through a growing dividend stream. Over two thirds of free cash fl
36:48 / 37:57
from transcript36:48 – 37:57
...your revenues, but but you can lose money the way we're talking about, which is you're actually making very productive investments. And and by the way, let's just just take one step back because the the number when I talk about cash flow, the number
17:42 / 19:04
from transcript17:42 – 19:04
You have EBITDA, and there's not much else below that for cash conversion. When you think about the cash flow characteristics after EBITDA, CapEx, it's not a capital intensive business. We used to joke that when your CEO broke his iPad, that was the
10:32 / 11:37
from transcript10:32 – 11:37
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