The Globe and Mail attempts to identify firms showing an improving ability to produce lots of cash in its Wednesday edition. The Globe's Ian McGugan writes in the Number Cruncher column that he employed the services of CPMS Morningstar Canada consultant Craig McGee to help search the Canadian stock market for companies that met four major criteria: high and increasing returns on invested capital (Mr. McGee measured this by looking at each firm's earnings before interest and taxes, and dividing this figure by the total amount of the company's debt and equity); high free-cash-flow yields; high free cash flow margins; and a tendency over the past three months for analysts to increase their earnings estimates for the company. Only companies with a market capitalization greater than $200-million were considered. The stocks Mr. McGee picked have generally produced strong returns so far this year and for good reason -- they are improving their operating efficiency and analysts expect further growth ahead. Mr. McGugan says bargain hunters should take a close look at these companies. Stocks showing high returns are Mega Brands, MTY Food Group, West Fraser Timber, Parkland Fuel, Nordion and Canfor.