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Re: wbmw post# 63906

Tuesday, 11/22/2005 2:19:00 AM

Tuesday, November 22, 2005 2:19:00 AM

Post# of 97586
(sorry for responding to something 3000 posts ago -- somehow I linked back to this)
ChrisC_R noticed that shareholders equity barely budged despite a claimed profit of $2B. alan81's answer was correct -- $2B is about equal to the loss Intel got by taking $2.5B of shareholder's money and buying stock worth $0.5B with it.

Your "cash flow reconciliation" actually showed exactly the same thing, though it was for six months, not three. The "Net cash used for financing activities" of (5,159) more than used up the entire amount of positive cash flow provided by "Net income" (4,216).

What were these "financing activies?"

97% of it was "repurchase and retirement of common stock" - (5,000)

So, yes, both the cash flow statement and the balance sheet are consistent. They show that almost all of Intel's earnings were sucked up by the share repurchases, leaving no additional value in the company.

Petz

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