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Metrics

Dickinson phase

A firm life-cycle phase determined from the signs of its three cash flows.

Dickinson's method (2011) reads a company's phase not from its age but from the signs of its operating, investing and financing cash flows. The pattern of pluses and minuses maps to introduction, growth, mature, shake-out or decline. Its strength is that it uses only the cash-flow statement and needs no subjective judgement.

Example"+ operating, − investing, + financing" = growth; when financing turns negative (debt repayment), the phase becomes mature.

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Educational content, not investment advice.