Honest answer

The profit and loss account of the club is misreading to the general user of accounts and is not a indicative measure of success or failure to manage cash. Depreciation and amortization are not something you write out a cheque for. If you are going to comment on the P&L use a ratio such as earnings before interest, depreciation and amortization, look at gross and net margins and interest cover.

You should focus on the balance sheet and cashflow statement. Look at cash amd readily convertible assets. Think about debt to equity and net assets.

Posted By: J in NYC, Dec 21, 10:22:21