Donald W. Reynolds National Center For Business Journalism

Two Minute Tips

Steven Orpurt

Dr. Orpurt earned his MBA and Ph.D. at The University of Chicago Booth School of Business (in accounting). His dissertation entitled “Local Analyst Earnings Forecast Advantages in Europe” was named the American Accounting Association International Section dissertation of the year in 2004. Dr. Orpurt is a faculty member at Arizona State University where he teaches upper level undergraduate financial accounting and a master’s level corporate governance, ethics, and sustainability reporting course.

My Latest Articles

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Why EBIT and EBITDA matter to reporters

EBIT and EBITDA: Measures of operating performance EBIT is Earnings Before Interest and Taxes. EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. Analysts and managers take these measures from

Company books and calculator.

How gross profit measures a company’s health

A quick measure of competitiveness Analyzing gross profit can be a valuable way for investors (and journalists) to better understand how an entity is competing in its industry. An analysis

Ken Teegardin Numbers And Finance

Why consolidation accounting matters to reporters

Consolidated statements: Information goldmines The word ‘consolidated’ in financial statement titles signals that subsidiary company financials are added to parent company financials. Large economic entities such as General Electric consist

Ken Teegardin Numbers And Finance

Investment in equity securities

Investment Accounting Last week we explored the accounting for debt securities. Like investment in debt, many entities invest substantial sums of wealth into equity securities. Let’s explore the accounting for

Ken Teegardin Numbers And Finance

Investment in debt decurities

Investment Accounting Most entities maintain an investment portfolio that includes bonds, shares of stock and derivative securities. Entities maintain investments for a myriad of reasons including investing extra cash until

Ken Teegardin Numbers And Finance

Business basics: Intangible asset accounting

Controversy with intangible asset accounting Many capital market participants are dissatisfied with intangible asset accounting. The crux of the issue: Intangible assets are the most valuable assets for many entities

Ken Teegardin Numbers And Finance

Property, plant and equipment (PPE): Covering financials

You can discover numerous business article topics by analyzing business activities, such as property, plant and equipment, then comparing your analysis with managers’ representations about the business. It isn’t unusual

Ken Teegardin Numbers And Finance

New lease accounting standards

Articles Based on New Accounting Standards When the Financial Accounting Standards Board revises a standard, which they have been doing frequently, numerous potential business article topics result. Interest in FASB-standard-related

Ken Teegardin Numbers And Finance

Lease accounting

Lease Accounting is Changing Recently the Financial Accounting Standards Board approved a new lease accounting standard U.S. public entities will adopt starting in 2019. This shift creates an urgent need

Ken Teegardin Numbers And Finance

Earnings per share (EPS) and share buybacks

Earnings Per Share (EPS) Capital market participants probably watch, analyze and discuss earnings per share more than any other financial measure. Managers talk about EPS when they announce earnings and

Ken Teegardin Numbers And Finance

Days in operating cycle analysis

What Is It? Why Analyze It? Often managers announce current earnings results, discuss their business initiatives or talk about other interesting aspects of the entities they manage. While their comments

Ken Teegardin Numbers And Finance

What is goodwill in accounting?

Accounting goodwill is often misunderstood Accounting goodwill is an asset shown on the balance sheet. It has a specific definition under generally accepted accounting principles (GAAP) that most investors and

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