Greg,
I am looking at yearly figures. Where did you get the Q3 figures?
For example, in 1995 Intel had income of $3556M, depreciation
of $1371M, for a net cash flow of $4937M. I am going to offset
this by spending on property, plant, and equipment of $3550M.
So, free cash flow is about $1387M, or 39% of net income.
Or, you could say plant etc. less depreciation is $2179M, or 61% of
net income.
You are welcome to quibble with what I am doing here. But however
you slice it, that is a lot of money to sink into plant and equipment.
I think this year will be better, they will have roughly flat spending
with increased income and depreciation. But I still claim net
spending will be closer to 50% than 10%.
--joel |
