Comment by trhway
6 months ago
Yes, that is tremendously important aspect here - the US tech would look better on paper - higher paper profits due lower paper expenses - while getting increased cash flow stress due to decreased deductability of the salaries which are among the main expenses in software dev business.
>Yes, that is tremendously important aspect here - the US tech would look better on paper
It's completely unimportant. Nobody is getting fooled "on paper" by amortized salaries.
Except for example the millions of stock market casual participants.
People is getting fooled by "adjusted" earnings that reduce salaries "on paper" by hiding the "non cash" component.
Want a bet?
I’ve seen it used in UK listed companies to massage the profit numbers and make divisions of the company seem more profitable than they are