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Outsourced labor is logged as CapEx in SEC filings and is a means of hiding labor expenses to improve EBITDA (which is used as a primary indicator of business h
by riskable 10y ago
Outsourced labor is logged as CapEx in SEC filings and is a means of hiding labor expenses to improve EBITDA (which is used as a primary indicator of business health).
If businesses had to report outsourced labor as OpEx instead of CapEx many would see drastic changes to their EBITDA and their stock would drop (for good reason: They're hiding important investment information).
The SEC has supposedly been planning to fix this problem for years but has done nothing.