Actually I was referring at the stock dilution/resistance by the convertible notes and the drop of current assets over the last two quarters. I'm not even remotely an accountant but the thing reads like they financed their profits from selling the silverware, so to speak.
I'm not sure about the convertible notes issue, but the latter, the "current assets" issue, seems like a good thing to me. My understanding is that companies declare their stock that is currently on order, i.e. ordered by consumers/resellers but not delivered yet by Apple, as an account receivable. If Apple has decreased its lag time between manufacturing and selling, which it has, or if it has cleared out a lot of old stock, which it has too, then their accounts receivable will go down. Assuming that Apple accounts on a cash basis rather than accrual basis, this means that that money can be reported as a profit, which would not have been possible otherwise.
rhet0ric |
