APX 0.00% $2.17 appen limited

Appen Strategic Valuation, page-2

  1. 7,520 Posts.
    lightbulb Created with Sketch. 1110
    With all the focus being on EBITDA, one should be paying attention to the D&A as well.

    D&A is significantly increasing which dampens the real profit growth rate.

    Focusing only on EBITDA is ignoring the full picture:

    Depreciation has increased from $1.5m in 2018 to nearly $10m in 2020
    Amortization has increased from $7.5m in 2018 to more than $30m in 2020.

    Combined thats an increased cost below EBITDA of $32m in 2 years.
 
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