Thursday, March 21, 2019
Credibility?
How does a company that reports financials in a suspect way maintain credibility as a security firm? This is a challenge for ADT. The corporation would have you believe it is trustworthy to protect your property, but at the same time, it wants you to accept that its way of calculating income is better than GAAP and SEC regulations. ADT was fined by the SEC last December for non-standard reporting. It is apparently persisting in its course of encouraging reporters and analysts to look at it differently. Most consumers won't pay attention to income and balance sheets so ADT has room for maneuver. But, at some point a journalist is going to point out the hypocrisy and will assault its credibility. ADT would be better off if it started with transparency and accepted that it is not doing well as a business. This would give it impetus to change. Fiddling the numbers ultimately fools no one.
Comments:
Post a Comment