Earnings before interest, taxes, depreciation, amortization and ... coronavirus? Companies are getting creative with their accounting during the pandemic, and it may not paint a full picture of their business.
The COVID-19 outbreak has brought out some creative accounting at companies, as executives attempt to gauge the impact of the pandemic on their businesses and how they would have performed if the crisis hadn’t all but shut the economy down.
“ “People will get creative telling their story and our message is to be cautious of the creativity.” ” There are questions, however, about the validity of adjusting away business activities related to a global health crisis when it’s unclear how long the pandemic will crimp Uber’s business. The company did not break down the drivers of that earnings impact in its release, but provided some more detail in a supplemental investor-briefing file. That file cited incremental bad debt expenses, March Madness production shutdown costs, and payments to front-line workers, as well as their impacts on reported Ebitda, amounting to about $430 million, or 5 cents a share.
Peer Verizon Communications Inc. VZ, +2.97% took a different route, disclosing that the pandemic had a 4-cent negative impact on both reported and adjusted earnings per share, mainly related to an increase in the company’s bad debt reserve. “Firms will insist some of the costs will be non-recurring, and to some extent that’s true, but they’re probably going to dump all kinds of costs in this period that would have otherwise affected the firm in the future,” he told MarketWatch.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Keep The Lights On COVID-19 Doc Fund Distributes Grants To 15 Feature DirectorsEXCLUSIVE: A Sheila E. documentary, a film from The Two Killings of Sam Cooke director about growing up female in the Deep South, and a free speech project from Julia Bacha are among those films aw…
Lire la suite »
Germany’s contact tracers try to block a second covid-19 waveContact-tracing has long been deployed to manage outbreaks of tuberculosis and sexually transmitted diseases
Lire la suite »
Everbridge BrandVoice: How To Assess Your Business’s Readiness To Reopen Amidst COVID-19The spread of COVID-19 represents a perfect storm for business disruption, combining a rapidly evolving global threat, an uneven recovery, disparate government regulations and shaken supply chains Sponsored by Everbridge
Lire la suite »
Masks probably slow the spread of covid-19One study found that a tea-towel worn around the face as a mask captured 60% of droplets. Surgical masks capture 75%
Lire la suite »
How the COVID-19 pandemic will affect hurricane disaster planningWith the pandemic forcing families to stay home and avoid gatherings, a strong hurricane could require them to consider the very opposite: evacuate and find new shelter.
Lire la suite »