Rick Steves: EBITDA is such a common metric, it's absolutely worth trying to understand and unpack. He says companies that stay in business most constantly spend cash on maintenance cap X. But we have an excellent proxy for the recurring cash that a company needs to spend to maintain its position, he says.Steves: We can treat appreciation expense in a matter that's consistent with its economic basis.
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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