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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (13010)	8/16/2001 3:33:29 PM
From: Gus	Read Replies (3) \| Respond to of 17183

Went trailin', came back lazy, eh JDN? BTW, Is your bank starting to lend again? EMC CASH FLOW 1996-2000 Operating Y/Y CAPEX Y/Y Free Cash Y/Y Cash Flow* % % Flow % 1996 $ 483M 181% $126M 37% 357M 310% 1997 507M 5% 211M 67% 296M -17% 1998 855M 11% 427M 102% 429M 45% 1999 1.4B 60% 524M 23% 847M 97% 2000 2.1B 50% 1.1B 110% 1.0B 20% 1Q01 511M -5% 281M 54% 230M -35% 2Q01 508M 6% 226M 11% 282M 2% 1H01 1.0B 0% 507M 31% 512M -29% Net cash provided by operating activities. MGFS Definition of terms: Cash Flow* Net income minus preferred dividends plus depreciation (as given in the income statement). Generally speaking, cash flow is the best measure of a company's profits, and is usually calculated by adding depreciation and any other non-cash charges to earnings after taxes. Investors look to cash flow for several reasons: because firms have accounting leeway when it comes to reporting net income; because depreciation charges, while substantial in many industries, aren't genuine bills that have to be paid; and because cash flow is the key to a company's ability to pay dividends, cover debts and so forth. Thus, some analysts focus on the ratio of price to cash flow rather than the traditional price/earnings (P/E) measure. Cash flow is especially useful in assessing firms in capital intensive industries -- cable TV, for instance -- in which huge depreciation charges can hide healthy profits. *Free Cash Flow* This is cash flow from operations minus capital expenditures minus cash dividends paid -- at least in the view of some analysts. The truth is that opinions differ about what constitutes "free" cash flow and how -- or whether -- it differs from conventional cash flow. The premise behind backing out capital expenditures and dividends is that these are optional and therefore should be set aside to see how much income a company is really generating. The dividend could always be suspended, after all, and even capital intensive firms can usually limp along for awhile on reduced capital outlays. The goal is the same as with cash flow: to look behind the smoke and mirrors sometimes associated with net income. moneycentral.msn.com