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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (58459)	3/12/2002 5:49:25 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 77400

So essentially you included all working capital changes. I'm not suggesting that reducing (or increasing) AR is not a good thing. I'm suggesting that it isn't a source of shareholder equity. It's already an asset amongst the rest of shareholder equity, just sloshing about from the cash account to the receivables account. Same with all of the other assets in that account. Some of which came from acquisitions that flow through from 'cash flows from investing activities'. Which if you include, is a nifty kind of laundering of equity financing over into operating cash flows. So I suggest that if you focus on cash flow from liquidation of working capital, you are not measuring the cash that's flowing from outside the company, you are measuring the cash that's flowing inside the company. You can calculate that number if you like, but it's like measuring all of the money going into your savings account, regardless of whether the dollar came from your employer through direct deposit or as a transfer from your checking account. I suggest that for the purposes of estimating how much wealthier you might be if this keeps up, it's better to count the former, and that the latter is irrelevant. Except perhaps to keep tabs on your ability to write checks. John