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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (15031)	8/2/2002 10:12:04 PM
From: Don Earl	Read Replies (1) \| Respond to of 78515

Dave, <<<What you are trying to compare is a company's Income Statement to a company's Statement of Cash Flows.>>> You lost me on that one. Unless we're going back more than a few posts, I don't recall making the comparison. At the same time I do like to see some relationship between free cash flow from operations, and earnings according to GAAP. If Don Earl, Inc. earns $20, with AR at $50, somewhere along the line there should be some cash coming in as the $50 is collected. Unless DSO is in excess of 90 days, on a quarterly basis, the $50 should be flowing as cash with $20 showing up as profit AND free cash flow from operations. If that isn't the case then Don Earl, Inc. is likely to go the same route as Global Crossings, Inc..