$16B is the top line gross revenue number.
You don't count R&D as an expense per GAAP, so...
They have claimed $8B in EBITDA, also leaving out the amortization of R&D costs.
Those aren't audited numbers, as far as I know.
You don't count R&D as an expense per GAAP, so...
They have claimed $8B in EBITDA, also leaving out the amortization of R&D costs.
Those aren't audited numbers, as far as I know.
*they actually use "Adjusted EBITDA" which is even more nonstandard and means they define the accounting however they want!
Enron would be proud...Theranos-level Transparency...
90% of the valuation is about Golden Dome
I'd always wanted to view affairs from a different lens, though I often feel the people who think everything revolves around bond rates or inflation numbers can miss the social picture of why things happen.
That’s a subject that fills many volumes on accounting, finance and economics. I don’t think you should be looking for one best theory, because there are valid differences of opinion in all these fields.
> I'd always wanted to view affairs from a different lens, though I often feel the people who think everything revolves around bond rates or inflation numbers can miss the social picture of why things happen.
The ‘social picture’ is what’s called welfare economics, which is a whole field in itself. I wouldn’t jump straight into welfare economics though, you’ll probably need to start with introductory economics to understand the basic terminology.
The most-powerful ones for individuals are the micreconomic mechanisms. Understanding how leverage, tranching and moving risk (and reward) across stakeholders and time, work, for instance. The necessary mechanisms and tradeoffs one must make, as well as the ones one should.
If you're looking for a formal model, it's the balance sheet. But not the accountant's. The financier's. Sources and uses, and uses and sources. Payments in, payments out. How do they balance over time; how do they change exposures to different layers of economic and legal control.
The primitives of these models are transactions and people. When you look through them, they're defining human wants and ambitions, faults and fears, patience and mortality.
It’s all basic stuff, often wrapped in jargon to throw people off.
If the fella wants to be properly informed, he needs a very strong understanding of fundamental microeconomic principles, along with macroeconomics. On top of that an understanding of financial accounting.
And… on top of that an understanding of corporate finance and valuation. Aswath Damodaran (look him Up on YouTube) is the go-to person for this.
Only then you will form a complete picture of what’s going on and make well informed statements about the future.
It's been interesting so far. The tough part for me is a the literature is all wrapped in "make your company more successful and profitable", and to be honest I couldn't give a shit about it that. I'm doing this for me, and because (especially on the age of AI) understanding this stuff is more important than ever.
Right now I'm reading Financial Intelligence by Karen Berman and and Joe Knight. There's different versions, but I choose the one "for managers". So far it's done a good job making the material understandable for someone who doesn't have a degree in finance. This the one that's more relevant to the post and will help you start understanding how companies operate at a financial level.
For personal finance I have read
I Will Teach You To Be Rich by Ramit Sethi and A Random Walk Down Wallstreet by Burton G. Malkiel. The first sounds "click-batey" but that's because "I will teach you the boring effective way to manage you're finances" doesn't sell. The latter gets more into the weeds on investing. Bother are great (though Random Walk has been edited many times and the beginning of the book has become bloated, so I'd recommend skimming it a bit since it's just history on epic financial crashes).
I'm planning to read:
7 Powers — Hamilton Helmer
Good Strategy/Bad Strategy — Richard Rumelt
The Outsiders — William N. Thorndike Jr.
The Intelligent Investor — Benjamin Graham
The Psychology of Money — Morgan Housel
What did you read that worked?
I'm just stating out on this, so I haven't gotten through everything I want to read yet. Right now I'm reading Financial Intelligence by Karen Berman and and Joe Knight. There's different versions, but I choose the one "for managers". So far it's done a good job making the material understandable for someone who doesn't have a degree in finance. This the one that's more relevant to the post and will help you start understanding how companies operate at a financial level.
For personal finance I have read
I Will Teach You To Be Rich by Ramit Sethi and A Random Walk Down Wallstreet by Burton G. Malkiel. The first sounds "click-batey" but that's because "I will teach you the boring effective way to manage you're finances" doesn't sell. The latter gets more into the weeds on investing. Bother are great (though Random Walk has been edited many times and the beginning of the book has become bloated, so I'd recommend skimming it a bit since it's just history on epic financial crashes).
I'm planning to read:
7 Powers — Hamilton Helmer
Good Strategy/Bad Strategy — Richard Rumelt
The Outsiders — William N. Thorndike Jr.
The Intelligent Investor — Benjamin Graham
The Psychology of Money — Morgan Housel
You do not need to study anything else. You can even be very successful in every stages of your life with it.