Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Tuesday, May 09, 2006
McDonald's McCurrency?
McDonald's (NYSE:MCD)recently reported global sales are on an upsurge. Banging the corporate drum they made reference to "Constant Currencies" when referring to global earnings. In the footnotes they provide "Information in constant currency is calculated by translating current year results at prior year average exchange rates." This is not a real number. Imagine looking at ExxonMobils revenues on the basis of last years oil prices. Who cares. Proper analysis needs to be grounded in reality.