Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

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Wednesday, July 02, 2008

Valero Energy Selects Contractors for $200 Million Hydrogen Project at California Refinery, an Industrial Info News Alert

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SUGAR LAND, TX, Jul 02, 2008 (MARKET WIRE via COMTEX) ----Researched by Industrial Info Resources (Sugar Land, Texas) -- Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) has selected contractors to construct a $200 million, 100-million-standard-cubic-feet-per-day hydrogen plant at the company's refinery in California. SNC-Lavalin (TSX:SNC) (Montreal, Quebec) is one of several companies that were selected.

For details, view the entire article by subscribing to Industrial Info's Premium Industry News at http://www.industrialinfo.com/showNews.jsp?newsitemID=135038, or browse other breaking industrial news stories at www.industrialinfo.com.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services. For more information, send inquiries to refininggroup@industrialinfo.com or visit us online at www.industrialinfo.com.

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 Contact: Joe Govreau 713-783-5147

SOURCE: Industrial Info Resources

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