RC Martin

Syntax-Brillian: A Classic Bottom

Joseph,
Forget apples and oranges, you've delivered a full basket of fruit this time.Best stop now before you reveal just how little you DO understand.

Equity tells us about working capital? Could you cover that one more time I missed something. I was always trained that working capital was current assets less current liabilities. How did equity join the recipe?

You stated, "Negative margins results from sales (i.e., revenues) being greater than costs of sales (i.e., COGS)." HUH? Once again I missed something or maybe I skipped class the day that concept was taught. If revenues were larger than the cost of goods sold wouldn't you be measuring GROSS profits?

as for that "cosmetic" difference could you provide an example of that and how that effects valuations? That is an interesting concept in itself. So to be clear, if the expense is part of cost of goods sold rather than SG&A it means you have to assign different values to the firm?