I was at a mower service center today and saw a filer for a company for sale. I looked it up on the web and a couple of things struck me as odd.
- The yearly sales were 147,000 but cash flow was only 90 K
- In all the comps cash flow was significantly less than gross sales
The broker listed 5 comps to compare this "gem" to. I was amazed at the disparity between sales and cash flow is everyone getting screwed or is there some accounting technique that I am not familiar with?