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To: DuckTapeSunroof who wrote (325620)12/4/2002 12:00:02 PM
From: DavesM  Read Replies (1) | Respond to of 769670
 
If stock options are in part used to pay employees, shouldn't granting stock options be considered a business expense? Aren't stock options considered as income for employees?

I suppose that Microsoft could tell the world that they made no money for each quarter, while in their financial statement, (each quarter) they've got a Billion dollars more in the bank (give or take)-with no debt. In the quarter ending Sept30, 2002, the Company had $13.6 B in long term investments, $35.1 B in short term investments, and $5.3 B in cash ( $54 Billion in cash and investments). For the quarter ending June30, 2002; the company had $1.1B in Cash 37.6 B in short term investments and $14.2 B in long term investments ( $52.9 Billion).

How do you evaluate a company that makes no money every quarter, but adds a couple billion in cash and short term investments (money market and t-bills) each quarter?