Home Tag "Fannie Mac"

The Financial Crisis

When I attended graduate business school in the late 1970’s, the big “change” in finance was examining cash flow instead of earnings.  After all, the logic went, how can you make fair assessments on leverage and other ratios if you do not have a basic understanding of the underlying cash flow?  A few of us jokingly proposed that the solution to every case study should be the mantra, “cash is king.”