They say what gets measured gets done, but what gets done also depends on how it gets measured. Investors forget about this all too often when they look at data. The size and growth of corporate profits depend heavily on the accounting rules used to calculate them, which is why equity analysts are constantly adjusting financial statements to common rules.
The yardstick matters
The yardstick matters
The yardstick matters
They say what gets measured gets done, but what gets done also depends on how it gets measured. Investors forget about this all too often when they look at data. The size and growth of corporate profits depend heavily on the accounting rules used to calculate them, which is why equity analysts are constantly adjusting financial statements to common rules.