The earnings game is bizarre because it consumes a huge amount of time and energy in managing earnings rather than managing the company.
The presumption is that value revolves around one number: earnings. But even if that number is accurate, it is only a very small part of the story. What’s strange is that there is strong agreement between management and the market that it’s crucial to put earnings in the proper context of all the measures that determine value, but many companies don’t believe that their internal systems are strong enough to provide accurate information.
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