Good read on adjusted EBITDA, Preston. Always be skeptical of a metric that works in one’s favor all of the time. Do you truly believe that these companies would communicate their adjusted EBITDA if it reduced their EBITDA? Have you seen a case where one’s adjusted EBITDA is less than their non-adjusted EBITDA?
I can't think of any examples off the top of my head. But I can think of some reasons why a company would. For example, if a quarter or year is looking really bad, why not just pull in some adjustments to further reduce net earnings? Get it all out of the way and then offset later expenses to bolster earnings later.
Good read on adjusted EBITDA, Preston. Always be skeptical of a metric that works in one’s favor all of the time. Do you truly believe that these companies would communicate their adjusted EBITDA if it reduced their EBITDA? Have you seen a case where one’s adjusted EBITDA is less than their non-adjusted EBITDA?
I can't think of any examples off the top of my head. But I can think of some reasons why a company would. For example, if a quarter or year is looking really bad, why not just pull in some adjustments to further reduce net earnings? Get it all out of the way and then offset later expenses to bolster earnings later.