Home > Uncategorized > GE’s Jack Welch Knows About Cooking the Books | The Big Picture

GE’s Jack Welch Knows About Cooking the Books | The Big Picture

GE’s revenues grew 385% under his watch, but the company’s market cap grew 4000%. How did that happen? GE increased earnings over the years, and with stunning regularity, managed a quarterly profit beat.

Indeed, it was too regular: After the 2000 crash, we learned of earnings manipulation and accounting shenanigans. The criticism was GE Capital acted as an opaque leveraged hedge fund that always be counted on to help GE beat by a penny. (GE eventually had to settle accounting fraud charges with the SEC).

via GE’s Jack Welch Knows About Cooking the Books | The Big Picture.

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