Comments on: CHART OF THE DAY: THE HUGE EARNINGS REBOUND http://pragcap.com/chart-of-the-day-the-huge-earnings-rebound Thu, 24 May 2012 19:02:11 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: mh http://pragcap.com/chart-of-the-day-the-huge-earnings-rebound/comment-page-1#comment-12014 mh Mon, 22 Feb 2010 21:37:59 +0000 http://pragcap.com/?p=17241#comment-12014 I bet "mark-to-fantasy" accounting has a lot to do with the rebound.... I bet “mark-to-fantasy” accounting has a lot to do with the rebound….

]]> By: CTM http://pragcap.com/chart-of-the-day-the-huge-earnings-rebound/comment-page-1#comment-11997 CTM Mon, 22 Feb 2010 13:36:54 +0000 http://pragcap.com/?p=17241#comment-11997 Earnings = revenues minus cost of sales, operating expenses, and taxes, over a given period of time. It would be nice to see this chart matched up with revenue growth. I work for a large healthcare company and I know we implemented new programs to increase Working Capital - speed up acct recv, slow down acct payables. Telling suppliers, here are your new terms. ZeroHedge "However, a dig through several hundred balance sheets and cash flow statements, indicates that of this $130 billion cash increase, about $90 billion was due to Net Working Capital Changes, and another $55 billion was due simply to underfunding capex by an amount required to preserve maintenance cash generation from existing asset bases." Earnings = revenues minus cost of sales, operating expenses, and taxes, over a given period of time.

It would be nice to see this chart matched up with revenue growth. I work for a large healthcare company and I know we implemented new programs to increase Working Capital – speed up acct recv, slow down acct payables. Telling suppliers, here are your new terms.

ZeroHedge
“However, a dig through several hundred balance sheets and cash flow statements, indicates that of this $130 billion cash increase, about $90 billion was due to Net Working Capital Changes, and another $55 billion was due simply to underfunding capex by an amount required to preserve maintenance cash generation from existing asset bases.”

]]> By: Mago di OZ http://pragcap.com/chart-of-the-day-the-huge-earnings-rebound/comment-page-1#comment-11996 Mago di OZ Mon, 22 Feb 2010 11:59:58 +0000 http://pragcap.com/?p=17241#comment-11996 How much of these earnings are from financial services and the accounting rule changes for tech companies? I know financial services comprised approx 40% of S&P profits in the mid 2000's. Curious to see how much is real earnings growth and how much is money moving and accounting tricks? How much of these earnings are from financial services and the accounting rule changes for tech companies? I know financial services comprised approx 40% of S&P profits in the mid 2000′s. Curious to see how much is real earnings growth and how much is money moving and accounting tricks?

]]> By: David http://pragcap.com/chart-of-the-day-the-huge-earnings-rebound/comment-page-1#comment-11994 David Mon, 22 Feb 2010 06:59:44 +0000 http://pragcap.com/?p=17241#comment-11994 Zero Hedge has an interesting article on this and these "earnings" are not all they seem: http://www.zerohedge.com/article/accounting-cash-gimmicks-have-boosted-collective-sp-500-cash-balance-over-150-billion-start- Zero Hedge has an interesting article on this and these “earnings” are not all they seem:
http://www.zerohedge.com/article/accounting-cash-gimmicks-have-boosted-collective-sp-500-cash-balance-over-150-billion-start-

]]> By: Mike http://pragcap.com/chart-of-the-day-the-huge-earnings-rebound/comment-page-1#comment-11992 Mike Sun, 21 Feb 2010 19:59:23 +0000 http://pragcap.com/?p=17241#comment-11992 I wondered how much more profit can corporation squeeze out of jobs attrition? Also now that the inventory replenishment cycle is completed and sales have been shown to be at much lower level than expected, can earnings continue to outperform? Indeed with the last bastions of permanent employment (health care, education, and .gov) showing stress, will there be enough demand from exports to help drive earnings? I think the veneer is quickly wearing away. Staying long but with a tight leash... I wondered how much more profit can corporation squeeze out of jobs attrition? Also now that the inventory replenishment cycle is completed and sales have been shown to be at much lower level than expected, can earnings continue to outperform? Indeed with the last bastions of permanent employment (health care, education, and .gov) showing stress, will there be enough demand from exports to help drive earnings? I think the veneer is quickly wearing away. Staying long but with a tight leash…

]]> By: Charley http://pragcap.com/chart-of-the-day-the-huge-earnings-rebound/comment-page-1#comment-11991 Charley Sun, 21 Feb 2010 19:38:12 +0000 http://pragcap.com/?p=17241#comment-11991 Not a good sign. The data would tend to support opinions which say the market is approximately 40 percent overvalued. Not a good sign. The data would tend to support opinions which say the market is approximately 40 percent overvalued.

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