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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (47189)	6/11/1998 12:16:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

OT Thanks Mohan. I don't think I should really have OT across the top of this message, because that's a very important article, and should be read by all. The point is that when you use EBITDA you neglect some other key components of cash flow such as increases and decreases in accounts payable and accounts receivable. I can tell you that the problems of a financial analyst are terrible! First, you deal with funny numbers like depreciation. In theory the depreciation reported to stockholders should match the useful life of the asset, and in theory the CPA firms should be watch-dogging this. Yeah, right! Next you come to funny sales (like bogus sales into the channel which pop back out). Then you get computer systems glitches that for some reason seem to not accept certain payables. Then you get these humongous mismatches between "provision for taxes" on the income statement and "taxes paid" which appears as a foot note and are "reconciled" on the balance sheet as "deferred taxes" (which causes everybody's eyes to glaze over. And finally, you avoid disclosing the cost of compensating employees by using stock options, and then sort of telling about it on the statement of owners equity. Makes you want to be a shoe salesman. TTFN, CTC