Tren Griffin @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Jan. 31, 2020 1 min read

1/ GE's results today reflect improving *cash flow.* Not profit. Cash flow.

"Free cash flow from industrial operations was $3.9B in the fourth quarter. GE set a higher cash target for 2020 of $2B to $4B - above the $3B analysts expect on average." 

2/ Zero GE investors with any sense were focused on "GE's adjusted earnings totaled 21 cents a share, topping analyst estimates of 18 cents.

Cash is oxygen for a business and is a fact. You can count it and spend it. Earnings, especially adjusted earnings, are an opinion.

3/ The aviation business was crucial to sustaining an overall turnaround at GE by providing $4.4B in cash flow. GE had a “very strong close to the year on cash,” the GE CEO Culp said in an interview. 

Cash is also critical for startups. No cash? No future.

You can follow @trengriffin.


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