Aswath Damodaran
Facebook (Meta) Lesson 2: Accounting Inconsistencies and Consequences
48:19
In this session, I use Facebook's most recent (and disappointing) quarterly earnings report to talk about accounting inconsistencies in categorizing expenses (into operating, financing and capital) at firms, and how this mis-categorization affects their profitability, return and debt measures. I present templates for correcting for their inconsistencies, and how these corrections can affect the…