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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.07-1.1%3:59 PM EST

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To: RetiredNow who wrote (62756)1/24/2003 11:42:42 AM
From: hueyone  Read Replies (1) of 77400
 
See post below. A common argument of those who oppose giving credence to including stock option expense in the free cash flow calculation is that is a non cash item. My point below is that free cash flow already includes a non cash item expense in the case of companies purchasing capex or other business with shares. Would you agree? If you agree, then why should it be any less acceptable to include the non cash expense of stock option expense in the free cash flow calculation? And of course my larger point is that free cash flow that does not include stock option expense can be very misleading indicator of a company's ability to accumulate wealth.

Regards, Huey
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