:::renaissance chambara:::

Posts on quality, life, culture, the media, news & tech with a twist & a slice of Limey. I moved my blog to http://renaissancehambara.jp in December 2006, go there for the latest content.

Tuesday, July 13, 2004

 
The Number

Whilst catching up on my backlog of mails I came across this from CBS Marketwatch:

NOT MUCH SHOUTING GREETS YAHOO EARNINGS

Yahoo shares (YHOO) got the boot after the company kicked off a fresh
earnings season for the online-media group by only just measuring up to
expectations, demonstrating what American Technology Research analyst
Mark Mahaney called a mantra: "in-line quarters don't cut it for
Internet stocks."


Ok, basically what this guy Mahaney is saying that because Yahoo! managed to get their profit for the quarter in line with what a number of market anlaysts expected them to be (based on a guestimate set maybe 90 to 180 days back) then they deserve a kicking.

Unbelievable, accountancy despite the use of numbers is not an exact science, why?
- bills and sales are constantly coming in and out of a company
- what does a sale really mean? If you sign a 3 year deal for online advertising, should Yahoo! claim that as a sale all at once or claim as the money comes in
- when is the money in? When you invoice for it, or when it sits in your bank account
- is the capital gains made on the building you own and work out of profit?
- if you had a bumper quarther this time but you know that the next quarter will be soft, should you avoid booking all the sales in to give you an income cushion next quarter?
- How should you write off the depreciating value of computer equipment, chairs or a forklift truck? There can be more than one way of doing it that will affect the figures


With this in mind, I would recommend that you read The Number by Alex Berenson, which takes you through the insanity of it all in greater depth.


Create Social Bookmark Links


Links to this post:

Create a Link



<< Home

Archives

03/2004   04/2004   05/2004   06/2004   07/2004   08/2004   09/2004   10/2004   11/2004   12/2004   01/2005   02/2005   03/2005   04/2005   05/2005   06/2005   07/2005   08/2005   09/2005   10/2005   11/2005   12/2005   01/2006   02/2006   03/2006   04/2006   05/2006   06/2006   07/2006   08/2006   09/2006   10/2006   11/2006   12/2006  


Welcome, thanks for visiting and a bit about this blog (:::renaissance chambara::: all in lower case just like UNIX)
Got something to bitch about? Trying to legal the author or want to send scary fan mail? Click here for more details
Want to leave a comment? Feel free, but please take account of the guidelines
The blogroll (there's some missing that Bloglines can't read, if you're not in sort your feeds out)
Subscribe via RSS to :::: renaissance chambara ::::
The grooves that drive :::: renaissance chambara :::: (see what's on our iTunes)
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 2.5 License.

Blogger rox nuffsaid.