In the analysis of the sub-group of each business, cash flow ratios to investing in fixed
assets are not related to future earnings. This may be because investing in fixed assets is not
efficient, produces no profits, or there is little investing in business assets, which results in a
reduced ability to make profits. Cash flow ratios from operations to owner’s equity are not
related to future earnings. This may be because cash flows from operations are not kept for
accumulative profits but allocated for dividends resulting in little capital for business
expansion.