Ricky Martin: While EBITDA may violate the maintenance of finance by ignoring core recurring cash flows or overstating or operating income, it definitely still abides by the main tenets of humanity. He says there always is an incentive for us to embellish, to be involved in marketing. Martin: This is an opportunity for management to show their lens of the incremental information they have that might be better than a purely standardized version with GAP.
What’s the point of reading a company’s earnings report? Can’t AI do that job? Patrick Badolato, PhD, CPA is an Associate Professor at The University of Texas at Austin, McCombs School of Business where he teaches accounting and financial statement analysis. Badolato joined Ricky Mulvey to discuss: - How Walmart, Rent the Runway, and Peloton adjust earnings (and what it means for shareholders) - Why investors should follow a company’s operating income - The pros and pitfalls of GAAP metrics - A better way to count stock-based comp. Companies Discussed: WMT, RENT, PTON Host: Ricky Mulvey Guest: Patrick Badolato Engineer: Tim Sparks
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