Romney2012Defeat Obama 2012-Chg we can believe inPremium
join:2002-03-03
USA
kudos:4
1 edit | said by glinc:Its amazing how a company can lose money for so long and keep going lol Part of that answer is "Free Cash Flow" which for Sprint is positive and improving steadily. That often shows that a company is viable despite negative Income Statements(which is more a tax thing than an ongoing business measurement). Not that positive Income statements aren't important, just that it isn't always the best measurement of ongoing viability.
Some explanations of Free Cash Flow:
»finance.yahoo.com/news/Sprint-Ne···x=0&.v=1
Free Cash Flow is the cash provided by operating activities less the cash used in investing activities other than short-term investments during the period. Free cash flow results in the change in cash, cash equivalents and short-term investments less the change in debt and proceeds from other financing activities, net. We believe that Free Cash Flow provides useful information to investors, analysts and our management about the cash generated by our core operations after interest and dividends and our ability to fund scheduled debt maturities and other financing activities, including discretionary refinancing and retirement of debt and purchase or sale of investments. »www.investopedia.com/terms/f/fre···flow.asp
»www.schwab.com/public/schwab/res···ful.html
»en.wikipedia.org/wiki/Free_cash_flow |
