Why CBRE Group's Earnings May Be Less Than Awesomehttp://www.fool.com/investing/general/2013/03/22/why-cbre-groups-earnings-may-be-less-than-awesome.aspx Seth Jayson
March 20, 2013
It takes money to make money. Most investors know that, but with business media so focused on the "how much," very few investors bother to ask, "How fast?"
When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to CBRE Group (NYSE: CBG ) .
Let's break this down
Why does the CCC matter? The less time it takes a firm to convert outgoing cash into incoming cash, the more powerful and flexible its profit engine is. The less money tied up in inventory and accounts receivable, the more availa