%3cdiv+class%3d%22blog_post_content_wrapper+layout_list%22%3e+%0a+%3cdiv%3e+%0a++%3cp%3e+Companies+that+generate+free+cash+flow%2c+have+cash+on+their+balance+sheets%2c+and+limited+debt+have+many+options+for+how+to+put+that+money+to+work.+In+theory%2c+they+reduce+a+company%e2%80%99s+shares+outstanding%2c+which+boosts+earnings+per+share%2c+the+most+commonly+used+profit+metric+for+stock+investors+because+it+tells+them+how+much+of+the+company%e2%80%99s+profits+they+are+earning+for+each+share+they+own.+Maybe+for+the+moment%2c+the+company+has+excess+cash+and+has+invested+in+the+business+adequately%2c+but+unforeseen+competitive+threats+from+other+players+in+the+industry+could+emerge%2c+necessitating+more+investment+with+the+company%e2%80%99s+cash%e2%80%94and+lower+share+repurchases.+%3c%2fp%3e+%0a+%3c%2fdiv%3e+%0a+%3cdiv+data-testid%3d%22text-fade%22%3e+%0a++%3cdiv%3e+%0a++%3c%2fdiv%3e+%0a+%3c%2fdiv%3e+%0a%3c%2fdiv%3e