Organic Investments

 

APPLE & THE ART OF FINANCIAL ENGINEERING

Over the past decade we have been concerned about the shift in management focus from growing revenues to financial engineering. The use of “adjusted” earnings instead of GAAP (generally accepted accounting principle) earnings has been deeply concerning and regularly exploited. As the compensation packages of executives have become increasingly tied to the performance of non-GAAP metrics and the proportion of their compensation awarded via stock options has skyrocketed, there is a tremendous amount of incentive for executives to juice their earnings. For further information on non-GAAP earnings please refer to our previous blog here. In this article we will focus on a more traditional form of

Recent Posts
Archive

© 2016 Summerhill Capital Management