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re: Remember the Wayfair CEO who at the holidays told his employees to work harder? Well...

Posted on 1/20/24 at 9:11 pm to
Posted by Samso
nyc
Member since Jun 2013
4736 posts
Posted on 1/20/24 at 9:11 pm to
quote:

When the CEO of an established company that's been in business for a while is touting either EBITDA, Free Cash Flow or Positive Cash Flow, dump their stock.


Free cash flow is actually a legitimate metric that is important. EBITDA not really, but it’s how companies are valued today by the majority of the investing public, despite its flaws.

Warren Buffett has long been a harsh critic of EBITDA but champions free cash flow to assess companies.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37175 posts
Posted on 1/20/24 at 9:20 pm to
quote:

And what do they do to your tax liability?


Well it reduces your tax liability, just like any other expense, except that it is measured different for GAAP vs tax.

GAAP has salvage value and straight line, tax has no salvage value and in my cases, accelerated depreciation.
Posted by DownshiftAndFloorIt
Here
Member since Jan 2011
66763 posts
Posted on 1/20/24 at 9:27 pm to
quote:

When the CEO of an established company that's been in business for a while is touting either EBITDA, Free Cash Flow or Positive Cash Flow, dump their stock


Damn baw, if my CEO is doing it do I need to go job shopping?

First it was EBIT, now it's EBITDA, is EBITDALayOff next?????
Posted by lynxcat
Member since Jan 2008
24205 posts
Posted on 1/20/24 at 9:28 pm to
Bringing too much money board to the OT

FCF, Operating Income, and Net Revenue are the three metrics that matter to me.
Posted by Longhorn Actual
Member since Dec 2023
954 posts
Posted on 1/20/24 at 9:54 pm to
quote:

I wish more people understood this simple concept.

When the CEO of an established company that's been in business for a while is touting either EBITDA, Free Cash Flow or Positive Cash Flow, dump their stock.


EBITDA is garbage, but FCF is a great tool for assessing a company's overall health - it basically says, "after spending everything we HAD to spend and what we WANTED to reinvest into the business (CAPEX), we have X dollars left to spend at our discretion."

When a person has a lot of discretionary income, they're usually in pretty good financial shape. Not really any different for a business.
Posted by biglego
Ask your mom where I been
Member since Nov 2007
76609 posts
Posted on 1/20/24 at 9:58 pm to
quote:

I was one that got laid off Friday.


Maybe next time you’ll be smart enough to identify as a Muslim transgender and be promoted
Posted by Havoc
Member since Nov 2015
28691 posts
Posted on 1/20/24 at 9:58 pm to
It’s shocking how effectively the Govt+Media machine can truly distort reality.
Posted by This GUN for HIRE
Member since May 2022
3008 posts
Posted on 1/20/24 at 11:05 pm to
Who was he telling this to? The average employee has no idea wtf he's talking about.
Posted by Big Scrub TX
Member since Dec 2013
33642 posts
Posted on 1/21/24 at 1:23 am to
quote:

It’s shocking how effectively the Govt+Media machine can truly distort reality.
Really? Do you have any actual numbers?
Posted by Captain_Morgan
BR
Member since Jan 2012
313 posts
Posted on 1/21/24 at 8:19 am to
I thought the D and A was Divestitures and Acquisitions. Is that not correct?
Posted by AUCom96
Alabama
Member since May 2020
5061 posts
Posted on 1/21/24 at 8:28 am to
quote:

Stock market is strong and so long as the share price stays stable, overall, no one gives a frick about layoffs


It's kind of like "as long as the car keeps going, who gives a frick if it has gas in it."

Reality will eventually return to the "free market".
Posted by VetteGuy
Member since Feb 2008
28403 posts
Posted on 1/21/24 at 8:35 am to
I would immediately vote to replace him.

Anyone that writes something like that, and then releases it for public consumption, lacks the foresight and strategic-thinking skills to lead a publicly-held company.

I doubt he's had a single original thought in his life.


As an aside, any numbnuts can improve a P&L by shedding headcount.
Posted by CAD703X
Liberty Island
Member since Jul 2008
78460 posts
Posted on 1/21/24 at 8:37 am to
Wayfair sucks.

You can literally find any light fixture or piece of furniture on there at Amazon for 1/3 the price and you don't have to put up with Wayfair bullshite return policies if you get a lemon.
Posted by Mo Jeaux
Member since Aug 2008
59158 posts
Posted on 1/21/24 at 8:41 am to
quote:

I thought the D and A was Divestitures and Acquisitions. Is that not correct?


No, it’s not.
Posted by FightinTigersDammit
Louisiana North
Member since Mar 2006
34863 posts
Posted on 1/21/24 at 8:43 am to
What is a fulfillment center?
Posted by Hogwall Jackson
Denver
Member since Feb 2013
5057 posts
Posted on 1/21/24 at 8:48 am to
Ever see the giant Amazon warehouses? That’s a fulfillment center. Also known as an FC.

They are large distribution centers(warehouses) placed in strategic parts of the country to position products closer to customers.
This post was edited on 1/21/24 at 8:53 am
Posted by La Place Mike
West Florida Republic
Member since Jan 2004
28846 posts
Posted on 1/21/24 at 9:06 am to
quote:

and you don't have to put up with Wayfair bullshite return policies if you get a lemon.


I bought a small desk from Wayfair during Covid. The desk was slightly damaged. The return policy was simple, keep it and we will send another one.
Posted by lepdagod
Baton Rouge
Member since Jan 2015
3460 posts
Posted on 1/21/24 at 9:14 am to
quote:

For such a strong economy and job market I sure do keep seeing layoff announcements, usually over 10% of selected workforce.


Not surprising... most companies bloated with employees not really doing...
Posted by OceanMan
Member since Mar 2010
20040 posts
Posted on 1/21/24 at 9:27 am to
quote:

Not every CEO is smart, but this one is excellent as speaking nonsense corporate-speak.


You see so much of this nowadays. Executives are driven by numbers unrelated to the product they are selling. They prefer to talk about financial metrics rather than the underlying accounting and internal trends.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37175 posts
Posted on 1/21/24 at 2:03 pm to
quote:

I thought the D and A was Divestitures and Acquisitions. Is that not correct?


Depreciation and Amortixation
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