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."  https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKBN1ZS1EW 

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.  https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/ge-jumps-cash-flow-outlook-114543399.html 

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


You can follow @trengriffin.



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