article thumbnail

Musings on Markets: Data Update 5 for 2022: The Bottom Line!

CFO News Room

To the extent that accountants mis-categorize expenses like leases and R&D, returns can be skewed, as can restructuring and one-time charges. That point is amplified by the accounting returns computations, since it looks like the actual returns earned by firms on their investments don’t meet their own expectations. .

Marketing 130
article thumbnail

Data Update 5 for 2022: The Bottom Line!

Musings on Markets

To the extent that accountants mis-categorize expenses like leases and R&D, returns can be skewed, as can restructuring and one-time charges. I will use this data to draw three broad conclusions: Low Hurdle Rate ?

article thumbnail

Data Update 6 for 2023: A Wake up call for the Indebted?

Musings on Markets

The second is that borrowing money will increase perceived default risk, and if the company is rated, lower ratings, and that too is true, but borrowing money at a BBB rating, with the tax benefit incorporated, might still yield a lower cost of funding that staying at a AA rating, with no debt in use.