General Electric, the venerable icon of American business, is having a rough time at the moment. Their share price is down an awful 35% in the year to date.
The markets aren’t happy, and one of the reasons why is that GE is touting no less than four different "relevant profit figures."
Instead of offering a single "bottom line" for investors to ponder, in recent years GE has been presenting this bewildering array of profit perspectives:
• Industrial operating earnings
• Industrial operating earnings + verticals
• GAAP Income from continuing operations
• GAAP net income
Call the first three "made up totals," if you will.
There's nothing intrinsically wrong with adapting measures to gauge performance. Many companies trumpet one profit report called EBITDA, which is the bottom line with interest, tax and depreciation added back. But using four raises eyebrows.
According to a recent WSJ article, under its new leadership, GE is considering reverting to a “back-to-the-basics approach” with its financial reporting.
As many retailers know, shoppers who are given too many choices often decide not to buy. Perhaps that's one reason GE's stock is languishing.
− Industrial operating earnings
− Industrial operating earnings + verticals
− GAAP Income from continuing operations
− GAAP net income
Color Accounting 总裁
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