Actor pace (Uber Technologies Inc. , UBER) , LyftInc. (LYFT) with the company of large newly established that other option appears on the market mode of new to its business undertook ballyhoo, these new pattern overturned traditional industry, but also make these company experience historic deficit.
To attract investor, these companies still put forward method of convention of a few blame to measure its to behave. But so far, investor not show respect for.
The forehead of 12 wane caustic before IPO is actor pace and Lyft the biggest in company of newly established of throughout history United States, the in pairs after these two nets make an appointment with car company to appear on the market meets defeat. Actor pace is having a deficit up to 12 months by March caustic amounts to 3.7 billion dollar, this company issues IPO valence to decide the low end in directive price interval, at present share price relatively its last week the emission of 5 price already dropped about 11% . Lyft last year deficit 911 million dollar, since this company share price appeared on the market March oneself, accumulative total drops about 30% .
It is better that these two companies offerred them to think the financial index that measures its outstanding achievement. These index oversight major spending. Actor situation call this index " core platform contributes profit " , be based on this one index, this company realized gain last year 940 million dollar, is not management deficit 3 billion dollar. Lyft uses different method to measure " contribution " profit is 921 million dollar.
A few companies are in appear on the market first days expression does not manage a state to be able to improve somewhat after beautiful. And besides the pace that divide actor and Lyft, it is better to have also a few companies created his to claim the index of special rule finance affairs that reflects oneself business state and latent capacity.
WeWork Cos. In achieve famous for " community adjusts Ebitda " after new gain index, IPO application will be submitted December last year. This tall valve that shares office space company expresses, this company should be regarded as company of science and technology. Ebitda points to accrual, duty, the profit before depreciation and amortize.
With computation of standard accounting method, net last year loss makes an appointment with WeWork 1.9 billion dollar, and afore-mentioned index that value with this company are measured, it is implementation net profit 467 million dollar. Money of market of mark general whole world wisdom (S& ; P Global Market Intelligence) data shows, afore-mentioned deficit specified numbers that are based on standard of American accepted accounting will be the United States appears on the market newly established company history the 2nd high level, interpose is mixed at actor pace between Lyft.
Howard Schilit of with be good at discovering accounting trick famous law Wu accountant says, inchoate investor tries to be found in open market receive dish person. He expresses, trade to promote these, they will be tectonic solid mode of a kind of absurdity.
The spokesman of WeWork and actor pace does not grant buy is judged. Lyft spokesman says, "Contributive profit " the number aims to help what investor realizes this company profit margin enlarge a circumstance.
Method of accounting of this kind of rich original makes a person associate to go up century the Internet bubble of 90 time end, deficit company is in at that time the advocate when appearing on the market " for reference " profit can measure its finance affairs to behave better. In closer period of time, company of Silicon Valley newly established uses index of finance affairs of a few unconventional, for instance " year is regular income " , " forehead of make out an invoice " and " book the specified amount " etc, compare with photograph of traditional accountant index, these index can leave better impression to investor.
A lot of companies think, trend respect increases in what know its business, it is better that these are not conventional index measure way. To those can the newly established company that high speed grows, venture capital investor can offer appraise value excessive price normally, and the big fee that a few early days produce neglect. Venture capital investor and entrepreneur express, citing, sale cost can let a company be in probably earlier incur deficit, but the clientele that if strive for,reachs from will for a long time look can provide usury benefit, invest now producing loss will be worthiness.
Once newly established company appears on the market, make an explanation with respect to the financial diction that must be not standard of American accepted accounting to be based on, announce they and traditional accounting standard to have why to differ. Censorial orgnaization reminds the accountant investor does not want oversight standard quota. Apply standard index to be able to compare the financial forms for reporting statistics of each company easily.
The enterprise is used generally can the index of number of forms for reporting statistics of beautification finance affairs, if use standard accounting method, its forms for reporting statistics can appear a few more inferior. Company of index of mark general Dow Jones (S& ; P Dow Jones Indices) Howard Silverblatt of high index analyst says, mark general 500 indexes composition the company uses index of the gain after adjusting to announce 2018 every accrual relatively the standard shows elevation gives 19 dollars.
This one word compares the past 10 years between carry amplitude on average to spend tower above one times. Since 1980, ebb only period just has appeared the difference is such big case between the gain index that the enterprise favors and standardization number, because the enterprise is in,decline period often often can undertake big decrease plan.
Silverblatt says, investor ought to pay close attention to this kind of distensible difference. "These are real cost, the likelihood means an enterprise to encountering difficulty. The likelihood means an enterprise to encountering difficulty..
2000, after Internet bubble burst, american negotiable securities trades committee (Securities And Exchange Commission, abbreviation SEC) chief accountant Lynn Turner ever sighed with emotion he says for " EBS " money newspaper. EBS is " Everything But Bad Stuff " abbreviate, means " a bit bad news also is done not have " .
It is financial and difficult that limit of company of science and technology can want to color, but a lot of companies can not get investor approbate.
2011, groupon Inc. (GRPN) an accountant index that the before 3 pages that use book of IPO raise capital by floating shares will come to explain he are created, this index is called " the branch after adjusting is amalgamative operation profit " . This index not plan get pay into the subscriber such as sale cost, bring about 2010 Groupon by operation deficit suddenly change one's identity of 420 million dollar makes profit 6, 600 thousand dollar. But the pressure by force of SEC, this company deleted this quota finally from inside book of raise capital by floating shares, its share price drops considerably after appear on the market.
2015, yahoo holds the post of when (Yahoo Inc. ) plum Ye Er of the CEO (Marissa Mayer) the new income index that used a Mavens be callinged by her, mavens is the initial abbreviate of shift, video, original unripe ad and gregarious English. What this index tracks is the partial business with the lesser dimensions that still achieves growth when Yahoo major servicing glides continuously. This action caused extensive criticism, after two years, the value that Yahoo lets with be being folded considerably to Verizon Communications Inc. Sold core business.
The EBITDA after the community of WeWork is adjusted does not include the running expenses of on 100 million dollars, admit listed the imprest discount that signs long-term lease to obtain, is not to be in rent period inside amortize. WeWork says, such doing can better active with the ground relevant cost segregation comes out.
Of actor pace " contributive profit " the charge of research and development that does not include on 100 million dollars (include pay of automatic road-sense research and development) , although actor situation says act of these research and development are right,the company did not come crucial. Lyft expresses, "Contributive profit " the main index that is ability of gain of Lyft of a report, but its " contributive profit " the number does not include 2018 year the running expenses of nearly 2 billion dollar, is this a large sum of running expenses cause loss of Lyft happening a huge sum.
Although investor of science and technology announces the gimmick of financial number to hold apprehension to company of newly established science and technology, but more and more helpless to this. Company of newly established of a few science and technology offers father share of super and voting right, lyft and WeWork also amid. This kind of practice is commonner and commonner in newly established company.
The Florida university according to studying IPO (University Of Florida) the data that professor Jay Ritter provides, in reaching the company of newly established science and technology that appears on the market during 2018 2015, the company amount that has share of super and voting right was occupied 1/3, and trace arrives 1980 before old in, this scale has 6% on average only. Go 38 years in, in be not IPO of science and technology, the company that has share of super and voting right is occupied only very one of. (wall street daily)
