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To: HH who wrote (17056)	3/29/1998 11:35:00 AM
From: Chuzzlewit	Respond to of 95453

Heyward, that's my definition also. Free cash flow = cash flow from current operations and obligations. Regards, Paul

To: HH who wrote (17056)	3/29/1998 1:22:00 PM
From: jbe	Respond to of 95453

On cash flow/free cash flow, I guess I did not make myself clear. It is just that some folks here were posting cash flow data about certain companies, and ranking them on that basis. However, looking at FREE cash flow data on those same companies, you get a very different picture, and a very different ranking. My question was, basically: to which data set do you pay more attention? As for a definition of free cash flow, there are quite a few different ones. I use the one that's easiest to calculate (but not necessarily the best): net income plus depreciation, minus obligatory capital expenditures. One major problem: from the balance sheet alone, you can't tell the "obligatory" capital expenditures (i.e., the ones the company must make in order to continue operating)from the "discretionary" ones (i.e., the ones you make not because you have to but because you want to). Consequently, most services that give you free cash flow numbers deduct ALL capital expenditures, so you have to treat those figures with care. jbe