Many midlife investors don't care about a company's price-to-earnings ratio or whether its net income is increasing.
What they want to see in a company before putting their money in its stock is the company's cash flow. Yes, cash flow really is king.
Cash flow is the amount of cash a company generates. It is calculated by adding noncash charges, such as depreciation, to the net income after taxes. Cash flow can be used as an indicator of a company's financial strength.