An they still can’t make a profit.
http://www.chicagotribune.com/business/ct-biz-sears-employee-cuts-store-closures-0324-story,amp.html
11 replies (most recent on top)
@SBAsVfC-1rxh understands it.
You people keep arguing about numbers that mean nothing in the reality of a business. The only things that matter are cash on hand and operational profit vrs debt and remaining assets. Anything else predicts nothing. If you can not make an operational profit it does not matter how low your taxes are.
EBIDA is also a non-gap number and not reflective. Warren Buffett and any money manager knows this.
"Buffett, in particular, has attacked EBITDA for not treating the depreciation of goods as “a real cost.”
https://finance.yahoo.com/news/charlie-munger-explains-called-popular-earnings-measure-horror-squared-164228068.html
Read up before you post.
Yes and Sears has no real value. Hence why there hasn't been nor ever will be a buyer for the company.
The value of the stock v the value of the business are two separate mattes. A business that would be profitable but for their debt can go bankrupt and survive since it has value. The stock is worthless with all that debt, a profitable company does have value.
Actually, that tax break helped them to profit as taxes are part of the cost of doing business. EBITA is earnings before interest taxes and amortization and the fact is that if Sears Holdings has lower taxes going forward then they'll be able to be profitable with their current model.
"Actually they made a profit in their last quarter"
Because of the tax break, and NOTHING else. And even then, whatever profit they made has quickly eroded away by now. You think it is going back into the stores? Going to build new stores? Paying off the huge debt that keeps climbing? Nope, it is going to the big time executives like Fast Eddie.
Sears obv. Being the lesser of the proficient golfers
And even if it was real. The stock would have gone up significantly as the markets would have efficiently priced the stock. It hasnt.
Non-gaap numbers dont count. That number that they claim is like a handicap in golf.
For those that dont know what a handicap is, its a number used to calculate a net score from the number of strokes actually played during a competition, thus allowing players of different proficiency to play against each other on somewhat equal terms.
Actually they made a profit in their last quarter