Ann and Valeria are screening for companies that have strong recurring cash flow, which they believe will uncover companies in the growth stage. They are surprised to discover that several companies on their list are mature companies. What accounts for this seeming discrepancy?

They have erred in entering their search criteria. Mature companies have sales growth that outpaces expense growth. Mature companies are cash-rich because they are able to leverage existing capital investment. They have identified mature companies that carry a lot of debt.