RE:RE:RE:This earlier post talksVery true lb1t.
I would even say that this is this type of " miscalculations" or confusion...with the former BBT which was the cause of many problems between BT and BAviation. Now that we finally have a one trick pony to manage, lets keep it simple. IMHO the financial community has not even started to appreciate the potential of BA. But ist coming and its potential will be recognized as the margin keep increasing. Martel and de Bart are the key players in this major turnaround. GLTA.
lb1temporary wrote: It's impossible; gross profits without depreciation means nothing.
Depreciation is the attrition, the usage of assets. You buy a machinery, it goes in assets but you use it for production. That cause a loss of value and depreciation is the way to pass it to the cost of products.
For Bombardier, there another fact: the development of jets, that is B$. The way to pass it to the cost is by the depreciation.
Having the gross margin whithout the cost of building, machinery and development of different jet models means nothing.
Another problem is the works in progress and finished stocks. I will not explain the problem here (too long) but you have to discriminate all the differents costs before establishing the amounts to go in the shorts term assets (for stocks - i.e. unsold) and the goods sold (planes delivered).