Afterpay Valuation, page-61

MMM, you say APT does not make a profit? how good are you at cash flow analysis? You know the difference between (not) making a profit and reinvesting in growth? You know the difference between IFRS, GAAP, AASB, and ATO numbers? You know the difference between compliance accounting and management accounting? The average accountant and auditor does not know this stuff, hence they end up working for Joe public, on piece rates.

As far as I can tell, it is making a very nice profit and reinvesting in growth (DYOR). The current trends in accounting includes "three way accounting" IE balance sheet, PNL, and 'comprehensive statement of cash flows'. Which is great for compliance purposes but does not tell anyone what is happening in the business. If an accountant could meaningfully understand a comprehensive statement of cash flows, all accountants would very quickly become retired investors.

One analysis I would like to see is borrowed from retail, 'like for like stores' how about APT numbers on a 'like for like' customers basis.

If they stripped out and cost coded every transaction, for clients (consumers) we had 12 months ago and clients (merchants) we had 12 months ago, revenue vis costs. Direct costs and o'heads. That number would take a lot of labor to generate, and would do nothing other than make me feel warm and fuzzy. But that is the only number that matters. The share price is a multiple of the best guess of this number.

DYOR DYOR DYOR !