⌕

Business Analysis

What makes a business great: cash generation, moats, pricing power, management quality and capital allocation.

Numbers describe a business, but quality decides its future. Here you learn what separates a durable compounder from a value trap: real cash generation, a moat that widens, pricing power, and management that allocates capital like it owns the place.

15 articles in this module

Why Cash Flow Is More Important Than Profit

Profit is an accounting opinion; cash flow is a fact. Learn the accrual gap, why reported earnings can mislead, and how to check that the profit is real.6 min read

What Is Free Cash Flow?

Free cash flow is the cash a business has left after running and reinvesting in itself. Learn the formula, why owners care, and how the number gets abused.6 min read

Revenue vs. Earnings: Top Line and Bottom Line

Revenue is what a company sells; earnings are what it keeps. Learn how the top line and bottom line differ, which matters when, and how to judge growth quality.6 min read

Understanding Operating Cash Flow

Operating cash flow is the cash a business earns from its core activities. Learn how it is built, why working capital swings it, and what it says about earnings.6 min read

Understanding Capital Expenditures (CapEx)

Capital expenditures are the money a business spends on long-term assets. Learn maintenance vs growth capex, the bridge to free cash flow, and capital intensity.6 min read

What Makes a Great Business?

A great business earns high returns on capital, can reinvest for years, has a moat, and is run by honest allocators. Learn the four pillars and how they connect.6 min read

Identifying Competitive Advantages (Moats)

A moat is a durable competitive advantage that protects profits. Learn the five moat types, each with a real example, and how to tell a true moat from a mirage.7 min read

Pricing Power Explained

Pricing power is a company's ability to raise prices without losing customers. Learn why it is the clearest sign of quality and how to spot it in gross margins.6 min read

Recurring Revenue Business Models

Recurring revenue is income that repeats predictably, like subscriptions. Learn why switching costs make it durable and why the market pays a premium for it.6 min read

Evaluating Management Quality

Good managers allocate capital well, tell owners the truth, and own stock. Learn to judge management quality through the record, candor, ownership, and incentives.6 min read

Capital Allocation Explained

Capital allocation is how a company deploys its cash across five uses. Learn the five options, how to judge each, and why it decides whether owner value grows.6 min read

Understanding Business Risks

Business risks are the threats that can permanently impair a company. Learn the five main types and how to find them in the risk factors section of a 10-K filing.8 min read

How to Identify High-Quality Businesses

A high-quality business combines strong numbers with durable advantages. Learn the checklist that ties ROE and ROIC to moats, pricing power, and management quality.6 min read

Understanding Economic Cycles

Economic cycles are the swings between expansion and recession in the real economy. Learn the phases and how cyclical and defensive businesses differ.7 min read

Industry Analysis for Investors

Industry analysis explains why some sectors are more profitable than others. Learn the five forces in plain words, unit economics, and where the profit pools sit.8 min read
Methodology© 2026 Tenet Investing Inc. · Toronto, Canada

Data from Intrinio and Financial Modeling Prep.