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 16, 2008

ATK, Lockheed Martin and Northrop Grumman Announce Teaming Agreement to Jointly Pursue Future Multi-Role Weapon Programs

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FARNBOROUGH, England, July 16, 2008 /PRNewswire-FirstCall via COMTEX/ ----Alliant Techsystems (NYSE: ATK), Lockheed Martin (NYSE: LM) and the Northrop Grumman Corporation (NYSE: NOC) announced that they have signed a teaming agreement to jointly pursue the emerging market for advanced capability multi-role weapons. This team provides any potential customer in this market with the product options that offer the best capabilities, schedule, and price available. This is achieved through the integration of the capabilities that the team provides across sensors, automatic target recognition, guidance navigation and control, air vehicles, propulsion, lethality, survivability, mission planning, platform integration, system engineering, and program management.

As the F-22 Raptor, F-35 Lightning II, unmanned aerial systems, and future aircraft platforms are fielded over the next decade, the team believes that an advanced multi-role weapon requirement will emerge in the future that covers both the air-to-air and air-to-ground missions. This team, with its current weapon programs and demonstrated advanced technology capabilities, is confident that it will offer the customer best value options to meet this need.

ATK is a premier aerospace and defense company with more than 17,000 employees in 21 states and $4.5 billion in revenue. News and information can be found on the Internet at http://www.atk.com.

Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation reported 2007 sales of $41.9 billion.

Northrop Grumman Corporation is a global defense and technology company whose 120,000 employees provide innovative systems, products and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

 ATK Media Contact: Tom Van Leunen Phone: 703-412-3218
   E-mail: thomas.vanleunen@atk.com Lockheed Martin Media Contact: Name: Heather Kelly Phone: 407-356-5351 E-mail: heather.kelly@lmco.com
   Northrop Grumman Media Contact: Name: Katie Lamb Phone: 410-993-5686 E-mail: katie.lamb@ngc.com

SOURCE ATK

http://www.ATK.com

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