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14 Stocks Where Inventory Grows Faster Than Sales

Income investors often use the Cash flow as key element of their stock valuation. The figure is calculated as net income plus several positions from the income statement.

- Start with net income. 
- Add back non-cash expenses. (Such as depreciation and amortization) 
- Adjust for gains and losses on sales on assets. 
- Add back losses Subtract out gains Account for changes in all non-cash current assets. 
- Account for changes in all current assets and liabilities except notes payable and dividends payable.


The problem is often the inventory. If sales run flat and inventory grows, there could be a massive risk for investors.

Goldman’s research shows that in a number of sectors inventory growth is outpacing sales growth and is also above normalized levels. Elevated inventory levels could help companies manipulate cash flow figures throughout 2016.

Here are a few stocks, discovered by Goldman Sachs where inventory sales could outpace sales growth...

Source:, Goldman Sachs

Source:, Goldman Sachs

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