This E-Commerce Business Is a Cash Flow Machine
Not all companies are created equal. Even among those that possess a competitive advantage, some businesses have better financial profiles, allowing them to produce more cash than others. And as long-term investors, this is exactly what we should look for.
The homemade and unique goods marketplace Etsy (NASDAQ: ETSY) is one such enterprise. Over the trailing 12-month period, it generated $584 million in free cash flow on $2.2 billion in sales, for a 26.6% margin. That is truly an exceptional cash margin, and it helps explain why the stock has been such a monster winner.
Let's break down why this burgeoning e-commerce company is such an effective cash cow.
Source Fool.com
