Whilst all financial metrics have the opportunity to be massaged by accounting practice, we believe that cash is the ultimate arbiter of value creation. Free cash flow margin measures the amount of cash generated by a firm as a proportion of revenue.
= Free cash flow/Revenue
Conceptually we have a reasonable understanding of inflation. As an economic term, inflation represents the general price rise of goods and services over a predetermined time.
Usually, your bank would pay interest on your savings accounts. Negative interest rates turn this around and mean customers have to pay banks to hold their savings.
You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt.
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