This E-Commerce Business Is a Cash Flow Machine

Not all companies are created equal. Even among those that possess a competitive advantage, some businesses have better financial profiles, allowing them to produce more cash than others. And as long-term investors, this is exactly what we should look for. 

The homemade and unique goods marketplace Etsy (NASDAQ: ETSY) is one such enterprise. Over the trailing 12-month period, it generated $584 million in free cash flow on $2.2 billion in sales, for a 26.6% margin. That is truly an exceptional cash margin, and it helps explain why the stock has been such a monster winner. 

Let's break down why this burgeoning e-commerce company is such an effective cash cow. 

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Source Fool.com