Sell Bombardier: Core EBIT Fell, Core Cashflow Is Negative, Covenants Maybe Under Stress

Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

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Forensic Accounting

<p>At their recent results, Bombardier seems to have persuaded the markets that the company is on the mend. The reality is that behind their creative accounting little has changed. Reported losses understate the final hits to retained equity and without, what appears to be a cynical manipulation of working capital cashflow usage would have risen not fallen. We urge investors to ignore the headlines and check the detail in the annual report. With assets barely exceeding liabilities, there is little…</p>

At their recent results, Bombardier seems to have persuaded the markets that the company is on the mend. The reality is that behind their creative accounting little has changed. Reported losses understate the final hits to retained equity and without, what appears to be a cynical manipulation of working capital cashflow usage would have risen not fallen. We urge investors to ignore the headlines and check the detail in the annual report. With assets barely exceeding liabilities, there is little…

Bombardier (BBD/B CN): Accounting Wizardry

Bombardier Inc

Bombardier (BBD/B CN): Accounting Wizardry