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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: locogringo who wrote (1091124)	9/30/2018 1:40:30 AM
From: bruwin	Respond to of 1577025

Just a few pointers about SEARS (SHLD) based on their recent Annual Income Statement .... FIRSTLY, as shown in "A" the company is TECHNICALLY INSOLVENT, i.e. its Total Liabilities EXCEEDS its Total Assets. We also see an ONGOING ANNUAL DECLINE in the company's Operating Revenue. Then, at "B", we see at its EBITDA level that it's already LOSING MONEY, i.e. any company has at least two "compulsory" deductions from its Top Line Revenue, namely Cost of Sales (CoS) and SG&A. What's left over after that appears as its EBITDA. If a company is already LOSING MONEY at that level it's in trouble. Then, at "C" we see the deduction due to what its DEBT is costing the company. In addition this DEBT EXPENSE has been RISING steadily over the last 5 years. And finally we see a LOSS at its Bottom Line, i.e. a negative NET INCOME. And that negative Net Income gets added, algebraically, to the "Retained Income" on the company's Balance Sheet, thereby reducing the company's Book Value, because the Balance Sheet can be presented in the simple equation :- SHARE CAPITAL + RETAINED INCOME = TOTAL ASSETS - TOTAL LIABILITIES, So when you reduce the left side of the equation the right side must follow suit. And BOOK VALUE = TOTAL ASSETS - TOTAL LIABILITIES. So, all in all, SEARS is deep in the Crap .... which is probably good for the sale of Toilet Paper !!!