PPRuNe Forums - View Single Post - BA Strike - Your Thoughts & Questions III
Old 28th Oct 2010, 16:09
  #390 (permalink)  
GemDeveloper
 
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SwissRef

Again - do you understand company results? Top level figures mean nothing. It is perfectly possible to have a company posting "profits" and then going bankrupt. Have you analyised the balance sheet, investigated the P&L, looked at the various accounting treatment of the assets, the various depreciation and amortisation, the off-balance sheet finance (and the off-balance sheet liabilities)? Until you do that, you have no idea about the health of a company.
A N D... the cashflow. It's usually the cashflow, or rather, the lack of cashflow, that sends Companies into bankruptcy, often at a time of coming out of a recession...
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