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Key signs a company's sales growth may be misleading
short by / on Tuesday, 13 May, 2025
A low cash-flow-to-profit ratio (CFO/EBITDA) and rising unpaid bills (receivables) can signal inflated sales. For example, if profits rise but cash flow falls, it may indicate revenue booked but not received. This could hint at major red flags in Financial Statement as seen in Solara FY22 case.
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