How to Determine the True Value of Use-of-Cash

The video tutorial discusses the historical significance of cash use, particularly since 1980, and its impact on the Dow Jones Industrial Average. It emphasizes the importance of capital allocation in distinguishing good management from great management. The tutorial provides insights into evaluating a company's use of cash through various methods, including listening to CFOs, reading press releases, and analyzing annual reports. It also covers the importance of return on capital and stock buybacks, highlighting the challenges investors and management face in determining intrinsic value and ensuring a margin of safety.

What role does return on capital play in evaluating a company's financial health?

Why is it challenging for management teams to understand their intrinsic value?