EBITDA. Is it misleading?

In the majority of distressed companies I’ve worked on, the two most important measures of financial performance are not reviewed – Operating Income (EBIT) and Free Cash Flow. Instead EBITDA, Gross Profit and Net Income are the only profit measures included on the Income Statements. Operating Income is a superior measure of an operating company’s income producing results. It includes all the costs and expenses management controls – including depreciation and amortization.... Read More

Peter Drucker’s Tenets

Peter Drucker, a writer of 39 books and a management consultant, was considered the “father of modern management”. An avid student of managing complex businesses, he was the advisor who helped mold many corporations into industry leaders which forged this country’s ability to become an economic super power. A Sampling of Mr. Drucker’s Tenets: “In most business failures, the board was the last to realize that things were going wrong.” “Managers should make a decision... Read More