EBITDA

Benchmarking Financial Performance

You already may have reviewed a preliminary draft of your company’s year-end financial statements. But without a frame of reference, they don’t mean much. That’s why it’s important to compare your company’s performance over time and against competitors. Conduct a well-rounded evaluation A comprehensive benchmarking study requires calculating ratios that

2021-04-12T14:54:36-06:00January 27th, 2020|

“Creative” Accounting – Warning Signs of Earnings “Spin”

Management wants to paint the rosiest possible picture of a company’s financial performance and may look to "creative" accounting. But aggressive earnings management, or “spin,” can mislead investors and lenders. Here are some ways U.S. Generally Accepted Accounting Principles (GAAP) can be manipulated to obscure the truth. Creative accounting vs.

2021-04-12T14:56:47-06:00April 17th, 2018|

Look Beyond EBITDA

Earnings before interest, taxes, depreciation and amortization (EBITDA) is commonly used to assess financial health and evaluate investment decisions. But sometimes this metric overstates a company’s true performance, ability to service debt, and value. That’s why internal and external stakeholders should exercise caution when reviewing EBITDA. History of EBITDA The

2021-04-12T14:57:43-06:00July 28th, 2017|
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