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Strategies & Market Trends : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (146)	11/4/1997 10:55:00 PM
From: Greg Jung	Read Replies (1) \| Respond to of 253

I'm wondering what role capital depreciation plays in the balance sheet, and I remembered a puzzling equation from this "basics of finance" book here, "Net income plus depreciation measures cash flow". In this way, maybe, "Cash flow" definition might be less than "Free cash flow". I'm not following the whole thread so I think its been hashed about a bit. For an ongoing business you'd expect depreciation to be balanced by capital investments but at times, such as if the replacement equip was cheaper than the original, it would represent extra cash - although how it is manifested I have no clue. Greg