tag:blogger.com,1999:blog-503796793662883384.post2247535401723653253..comments2023-11-05T01:51:19.237-07:00Comments on The Accounting Art of War: ValeantAnonymoushttp://www.blogger.com/profile/00259495239077437244noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-503796793662883384.post-81425320470449112262015-10-29T04:34:37.643-07:002015-10-29T04:34:37.643-07:00Unlikely, acquisitions require that the comparativ...Unlikely, acquisitions require that the comparative numbers should be restated.Anonymoushttps://www.blogger.com/profile/00259495239077437244noreply@blogger.comtag:blogger.com,1999:blog-503796793662883384.post-23938783006464762742015-10-28T23:11:44.018-07:002015-10-28T23:11:44.018-07:00Professor Elitzu, in the period from 2012 to 2014 ...Professor Elitzu, in the period from 2012 to 2014 (inclusive), cumulative sales and A/R growth are 261% and 265% respectively. The corresponding values for the period Q2'14 to Q3'15 are 49% and 56% respectively. These numbers are not too far off. <br /><br />Could the variations be due to the highly acquisitive nature of the company and the variation of the credit policies of the various acquired companies?<br />Anonymoushttps://www.blogger.com/profile/15563552011358552006noreply@blogger.comtag:blogger.com,1999:blog-503796793662883384.post-38117297096347910192015-10-28T23:09:10.559-07:002015-10-28T23:09:10.559-07:00This comment has been removed by the author.Anonymoushttps://www.blogger.com/profile/15563552011358552006noreply@blogger.comtag:blogger.com,1999:blog-503796793662883384.post-80212122497360475612015-10-28T21:03:19.239-07:002015-10-28T21:03:19.239-07:00Professor Elitzu, it appears that you are adjustin...Professor Elitzu, it appears that you are adjusting revenue and A/R. I assume for some of the recent acquisitions (Salix, etc.)? If so, can you provide some details around your adjustments? Thanks!jme6151215https://www.blogger.com/profile/14255391516329831677noreply@blogger.comtag:blogger.com,1999:blog-503796793662883384.post-90674277341124737562015-10-28T10:49:07.244-07:002015-10-28T10:49:07.244-07:00Also, the question implies that the sales occur on...Also, the question implies that the sales occur on one day during the quarter (presumably the last day) and then collected the next period. If this is the case this is even more damning. Usually sales and collections occur continuously throughout the quarter.Anonymoushttps://www.blogger.com/profile/00259495239077437244noreply@blogger.comtag:blogger.com,1999:blog-503796793662883384.post-67707527127884990792015-10-28T10:46:42.046-07:002015-10-28T10:46:42.046-07:00Could be. At the same time it does not explain wh...Could be. At the same time it does not explain why are they growing more than sales.Anonymoushttps://www.blogger.com/profile/00259495239077437244noreply@blogger.comtag:blogger.com,1999:blog-503796793662883384.post-71413408942175200462015-10-28T10:42:06.763-07:002015-10-28T10:42:06.763-07:00Professor Elitzu, could the high correlation betwe...Professor Elitzu, could the high correlation between sales and AR is just a matter of fact that Valeant sales is mostly based on credit and collect them next quarter? So very high turnaround of AR like collect AR and sale, and collect AR next quarter and sale...?<br />This kind of details are lost in cashflow statement.bloggerhttps://www.blogger.com/profile/16180046065050542190noreply@blogger.com