FW: wcom overbilling

[joe mcguckin <joe () via net>]

------ Forwarded Message
From: joe mcguckin <joe () via net>
Date: Sat, 06 Jul 2002 21:43:23 -0700
To: Hank Nussbacher <hank () att net il>
Subject: Re: wcom overbilling

On 7/6/02 9:04 PM, "Hank Nussbacher" <hank () att net il> wrote:

> At 04:50 PM 06-07-02 +0100, Stephen J. Wilcox wrote:
>
> > .. which is why I think people (especially US altho it seems to be coming
> > more
> > the normal in other markets) use EBITDA as it smooths out the bumps even
> > tho the
> > bumps are still there!
> >
> > The other nice thing in the telecoms world about EBITDA is the 'D' which
> > seems
> > to work quite well at hiding losses caused by falling fibre/bandwidth prices!
>
> From Barrons:
> EBITDA = Earnings Before I Tricked the Dumb Auditor
>
> -Hank
>
>
> > Steve


Why shouldn't interest expense be taken into account? After all, they (name
your favorite carrier) wouldn't have that nice fiber network if it weren't
for all the money they borrowed. Paying the interest on the borrowed money
should be treated as a normal business expense.

Joe

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