Why do you think Under Armour’s shares are down 40% from its high, given the growth? What is Wall Street wanting from UA? Do you think UA will be able to deliver? If you were CEO of UA, would you want to “manage” Wall Street’s expectations? If so, how?
SAP’s free cash flow increased, giving the company additional financial flexibility. Why do you think the European investor base would rather SAP reduce debt than increase share buybacks? Is being “debt-free” an “optimal” position for any company? Does is matter if it is European or not?
Do you agree that Apple (and CEO Tim Cook in particular) had a “terrible” year? What performance metrics, such as financial ratios, would you personally use to judge Apple’s performance? How would you assess their prospects?
So VW may accrue another billion as a contingent liability. What is the threshold for balance sheet recognition of contingencies under US GAAP? Under IFRS? Do you believe these future costs have already been reflected into the firm’s stock price? How could you determine if they have?
Are share repurchases “investments” in a firm’s own stock? Are they a form of “financial engineering”? What do you think is the real reason for the surge?
If you were the CEO of a MNC doing business in the U.K., how would you rank the factors in order of importance, including the corporate income tax rate, that you would consider in whether to continue to remain in the U.K.? What factors do you think Nissan considered?
Can you tell from this description whether the pro forma (adjusted) results for Marvell Technology are “good”?
How can lower inventory levels be associated with higher gross margins? What’s the counter argument? If you were the head of merchandising at Macy’s, what factors do you consider in inventory levels?
How would you determine whether financial reporting is “unbalanced”? How would you measure quality financial reporting? Do you think this attribute of financial reporting varies by country?
EBITDA, a non-GAAP measure, is apparently being tweaked, to make it “more” (?) non-GAAP. Should investors be concerned? Should investors be using cash based measures that are harder for firms to tweak? Should the government oversee non-GAAP metrics?
Do you believe it is unusual for governments to relinquish ownership of commercial enterprises in favor of private control? What do the Norwegian and Swedish governments believe that private capital structures could do better than social/public ownership? How would you measure whether private ownership in fact is better?
Can you follow the arithmetic supporting the claim that borrowing to fund pension plan assets can boost EPS more than borrowing to buy back stocks? What is your opinion about this financial strategy?
What accounting measurement and reporting issues are particularly applicable to firms with fewer fixed assets?
If you were CEO or CFO of a firm, what are the various factors you would consider in whether to buy back stock, pay a dividend, and/or invest in capex? Do you agree that the current trend in the market is unsustainable? What do you foresee happening? When?
Should gains on property sales for Lenovo be part of operating income (above the line) or should they be below the line? Does it matter?
How would you balance inventory between retail stores and distribution centers? Do you foresee more and more shopping online, even for toothpaste? Who wins? Who loses?
Tiffany’s sales were down for the quarter, and management warned that earnings for the current quarter would be worse than previously predicted. Are managers required to give such warnings? What are the consequences of not providing them?
Can you follow Fitbit’s numbers reported in the article and in the 8-K filing? The 8-K Filing is below in the next entry.
Most firms give some non-GAAP measures in their 10-Ks. If you are the CFO or Controller or General Counsel, what steps would you take to protect yourself and the firm against an SEC enforcement action re: improper non-GAAP disclosures?
