Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Joe Stocks who wrote (38540)	2/18/2002 10:53:54 AM
From: BWAC	Read Replies (1) \| Respond to of 53068

<EBITDA reporting is going to the wayside> Agasin I think you are misapplying some basic theories. EBITDA is not the same as Pro Forma. Taking GAAP earnings and adding back NON CASH items such as Depreciation and Amortization is very valid in determining the health of a company. You should look to see what each of the components of EBITDA is. Interest and Taxes are can even be deducted from the equation if you want the most conservative number. I don't think $23 Billion in debt is something to ignore. But given a company of AOL's size, scope, and cash flow; its not something to overly be concerned about either. Many large companies have similar debt. Many DOW stocks have similar debt. Many conglomerates have similar debt. All the RBOC's have similar debt. Again, I would like to point out that the debt to equity ratio is less than 1:1, even if you assume every single dollar of the goodwill is worthless. Any ratio at 1:1 is generally considered to be in the acceptable range. Its when the range gets up to 2 and 3+ times equity that the danger flag goes up for real.