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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.
Home / Markets / Industries / Technology
Thursday, May 15, 2008
Aternity Named as 2008 American Business Awards Finalist
Comtex
BOSTON, May 15, 2008 (BUSINESS WIRE) ----On the heels of being recognized as a Gartner "Cool Vendor" and this week's recent global customer wins in the insurance marketplace, Aternity Inc., the leader in frontline performance intelligence for Global 1000 enterprises, is proud to announce it has earned a slot as a finalist within this year's American Business Awards (ABAs). The independent judges of The American Business Awards have deemed Aternity's management team as worthy of national recognition by naming the Company as a finalist in the "Best Management Team" category. As such, Aternity is now in the running to receive a coveted Stevie Award.
Hailed as "the business world's own Oscars" (New York Post , April 27, 2005), The American Business Awards are the only national, all-encompassing awards program honoring great performances in business. Stevie Award winners will be announced during the annual gala on Thursday, June 12th at the Marriott Marquis Hotel in New York City. More than 600 executives from across the U.S.A. are expected to attend. The ceremonies will be broadcast on radio nationwide by the Business TalkRadio Network and hosted by Liz Claman of FOX Business Network.
More than 2,600 entries from companies of all sizes and in virtually every industry were submitted for consideration in more than 40 categories, including Best Overall Company, Best Executive, Best New Product or Service, Best Corporate Social Responsibility Program, and new categories including Best Management Team and Best Corporate Environmental Responsibility Program.
This accolade is one of several Aternity has received during the past year. Most recently the Company announced a significant insurance customer win - Menora Mivtachim Group - making Aternity the premier provider of end user management software to 70 percent of the Israeli insurance market. Aternity's CTO and co-founder was recognized by TheMarker magazine as a "Dream Team" honoree - a prestigious list that names the best 40 professionals in Israel to found a winning startup. Aternity was also the only end user experience management company recognized as a "Cool Vendor" in IT Operations for 2008 by Gartner. And earlier this year, the Company was hand-picked to present a live 6-minute "day-in-the-life" demonstration at DEMO 08.
"ABA entries grew more than 30% this year, so being named a Finalist is more of an accomplishment than ever before," said Michael Gallagher, founder and president of The Stevie Awards. "It means that independent business executives have agreed that the nominee is worthy of national recognition. We congratulate all of the Finalists on their achievement and wish them well in the competition." "We are honored to be an American Business Awards finalist for Best Management Team," said Trevor Matz, President and CEO of Aternity. "This recognition further validates our team's complete commitment to excellence and providing global enterprises with world-class capabilities that deliver high-impact results and solid ROI. It's the combination of our people and our technology excellence that fuel the innovation global enterprises demand."
Details about The American Business Awards and the list of Finalists in all categories are available at www.stevieawards.com/aba.
About Aternity
Aternity redefines end user experience management by providing the industry's first frontline performance intelligence platform designed to dramatically reduce business disruptions and significantly increase end user productivity. With Aternity, Global 1000 enterprises benefit from a 360 degree view of frontline user experience, self-learning, preemptive problem detection, and right-time decision support. Aternity achieves this by uniquely transforming every desktop - real or virtual - into a self-monitoring platform that is user-experience aware. With more than 100 years of combined experience, the Aternity management team brings together leading entrepreneurs, technologists and business leaders from the US and Israel. Among the investors in Aternity are Intel Capital, Vertex Venture Capital, Genesis Partners, and Clal Industries and Investments LTD. To learn how Aternity can bring winning performance to your frontline and to find out if you qualify for a free proof-of-concept, visit www.aternity.com.
About The Stevie Awards
Hailed as "the business world's own Oscars," Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, The Stevie Awards for Women in Business, and the Stevie Awards for Sales & Customer Service. Honoring companies of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about The Stevie Awards at www.stevieawards.com.
Global Sponsor of the 2008 Stevie Awards is Dow Jones. Supporting sponsors of The 2008 American Business Awards include FIS Softpro, High Performance Technologies Inc., John Hancock, RCN Corporation, Richardson, and Ultimate Software. Media sponsors include the Business TalkRadio Network, CRM Advocate, and Human Resource Executive. (C)2008 Aternity, Inc. All other trademarks or trade names are properties of their respective owners. All rights reserved.
SOURCE: Aternity
Aternity Donna Parent, 508-475-0414 donna.parent@aternity.com or PerkettPR Christine Major, 603-664-3075 aternity@perkettpr.com
Copyright Business Wire 2008
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