$250 Million - $177 Million = $73 Million
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repeet
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local 12 proud
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- Mar 5, 2004
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$$$$$$$$$$GOLDEN PARACHUTE FOR THE TOP$$$$$$$$$$$
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IMHO,............... Management has had difficulty with reporting the "real" numbers that would help employees make an "informed " decision on whether or not MORE concession money is necessary....I would like to suggest to anyone that is interested in looking further into this topic,... Please go to Usairway's website @ www. usairways. com.. Then move your mouse to PRESS INFORMATION, then click on NEWS RELEASES, then scroll down to Apr. 27, 2004 article titled USAIRWAYS GROUP REPORTS $177 MILLION FIRST QUARTER LOSS............ Please read the whole article..Near the end of the article, the COMPANY states....................... "Excluding the $250 million ATSB loan prepayment and other seasonal changes in restricted cash, Usairways achieved breakeven cash performance during the first quarter." Someone please help me... Is it $177 mil loss? ....... $73 mil profit ?.....or did the company "breakeven in the first quarter "???........
It depends on what's important to you at the time.
Cash flow is important in the extreme short term, so if you care about whether the company is going to have to file for bankruptcy, you care about cash flow.
Operating profits or losses tell you how the core business is doing. This is important to determine the sustainability of the overall business model.
Net profit or loss tells you what has happened to retained earnings. This is important in part because it tells you how long things can go at the current rate before the company goes out of business. It is also important because, taken in concert with retained earnings, it gives you a sense of how much long-term reinvestment opportunity remains within the company.
Retained earnings, incidentally, is the bludgeon with which WN is beating the rest of the industry over the head day after day. It's the reason they're paying so little for JetA.
Anyway, ultimately it's not a question of how much difficulty one has reporting "real" numbers. It's a question of what number is important for what use.
Cash flow is important in the extreme short term, so if you care about whether the company is going to have to file for bankruptcy, you care about cash flow.
Operating profits or losses tell you how the core business is doing. This is important to determine the sustainability of the overall business model.
Net profit or loss tells you what has happened to retained earnings. This is important in part because it tells you how long things can go at the current rate before the company goes out of business. It is also important because, taken in concert with retained earnings, it gives you a sense of how much long-term reinvestment opportunity remains within the company.
Retained earnings, incidentally, is the bludgeon with which WN is beating the rest of the industry over the head day after day. It's the reason they're paying so little for JetA.
Anyway, ultimately it's not a question of how much difficulty one has reporting "real" numbers. It's a question of what number is important for what use.
