News / Bog
Better Information or Wiping-out Traces? – The Re-Segmentation Financial Analysis Problem
Change is part of doing business. Today more than ever. And where there is change in the business there is also need for change in the reporting structure. IFRS 8 (Operating Segments) requires…
When Remuneration Targets meet Impairment Assumptions – The Weak-but-Strong Financial Analysis Problem
We know a couple of investors who once scratched their heads about the Chemring Group Plc. 2011 annual report (reporting date 31 October) and then decided to set a reminder alert for the next time…
Grifols’ Parking Game – The “Related-Party/Control” Financial Analysis Problem
In this blog we recently discussed some cases where the concept of control (HERE) or the existence of related-party transactions (HERE) played a major role. In fact, both topics share a common basic…
PG&E’s Wildfire Insolvency – The On/Twilight/Off Financial Analysis Problem
(English version of the VALUESQUE German blog post, 14 February 2019) As a starting point today, we do a little math exercise: what is the expected value of a 100 Euro future cash flow, realized at…
Shadowfall’s Attack on Eurofins – The “Related Party”-Financial Analysis Problem (Background)
On 16 October 2019, short seller Shadowfall issued a report on Eurofins, a Luxembourg-based laboratory services provider, raising several concerns regarding – amongst others – opaque intragroup and…
DS Smith’s Exceptional Charges – The “in-P&L-Presentation”-Financial Analysis Problem
IFRS is quite clear on what should be reported in the income statement for determining operating profit measures: Everything that generally qualifies as a revenue or an expense! There are no…
Unilever’s Argentina-Accounting Treatment – The Hyperinflation Financial Analysis Problem
Unilever has just announced a couple of days ago that they have changed the way of how to tackle hyperinflationary accounting topics for the calculation of one of its core KPIs, the “organic sales…
Schaltbau’s Securitization Program – The Financing/Operating/Investing Financial Analysis Problem
The German transportation-focussed engineering company Schaltbau Holding AG went through a deep performance valley during the last years. With ca. 45 mio Euro cumulative operating losses between 2015…
ProSiebenSat1 and the Programming Write-Down: the Kitchen Sinking Financial Analysis Problem
(English version of the VALUESQUE German blog post, 4 February 2019) Impairments and what investors can read from them is an evergreen in financial statement analysis. Today we have a look at a very…
Deep Dive into the General Electric-Markopolos Case – Here: The Baker Hughes Accounting
On 15 August 2019, General Electric (GE) has been hit by a research report written by former Bernie-Madoff-whistleblower Harry Markopolos which claimed that GE hides roughly 38 bn USD of accounting…