| Author |
Message |
Ron (Easy_rider)
Member
Username: Easy_rider
Post Number: 793
Registered: 12-2002
| | Posted on Tuesday, October 21, 2003 - 6:37 pm: | |
Hi Jim,
The particular fiscal year chosen usually has some relationship to the business cycle. That is why, for instance that retail chains have often had fiscal years ending in January, after the christmas season. Public companies like to have their busiest season included in financial reports released as soon as possible. It makes them look better sooner.
After the FY end has been chosen, it will remain the same and operating results can be compared year to year.
Sometimes a fiscal year end is chosen for tax purposes. This is particularly true for small or closely held private corporations. They do not need to report to public shareholders so they can choose the fiscal year end that makes the most sense to them. Usually they are interested in reporting the income at the latest time so that the tax obligation is delayed as long as possible. |
David R. (Rodsky)
Member
Username: Rodsky
Post Number: 265
Registered: 3-2003
| | Posted on Tuesday, October 21, 2003 - 3:46 pm: | |
Often times companies have fiscal year ends that are far off the calendar year end as this is their busiest time of the year. And they dont want it to coincide with the holidays. For example, Oracle's fiscal year end is May 31 - Q4 is their busiest quarter and they probably close most of their deals in the last week in May. ACS is a technology company so I would assume that's why their FYE is Sept 30. Nothing unusual |
Jim Schad (Jim_schad)
Intermediate Member
Username: Jim_schad
Post Number: 2035
Registered: 7-2002
| | Posted on Tuesday, October 21, 2003 - 2:44 pm: | |
I think ours ends in Feb so the 6 months off is what was concerning me. Thanks. |
mike550 (Mikeg)
Junior Member
Username: Mikeg
Post Number: 173
Registered: 8-2003
| | Posted on Tuesday, October 21, 2003 - 2:32 pm: | |
Jim - nothing to do with earnings manipulation at all. Most are actually not a month off - eg not too many Nov or Jan fiscal year ends. Typically they are at a quarter - eg March, June, Sept.
This is very common and zero indication of legitimacy. |
Jim Schad (Jim_schad)
Intermediate Member
Username: Jim_schad
Post Number: 2034
Registered: 7-2002
| | Posted on Tuesday, October 21, 2003 - 2:08 pm: | |
ACS just released their Fiscal Year Q1 results which ended in Sept 2003.
I understand fiscal years and calendar years and usually they are off by a month or two. But 6 months or more seems odd.
Are they manipulating accounting periods to prop up earnings? Does this eventually catch up with them or they run out of slack or is it no big deal?
They have had really stellar growth in the last year or two and it seems like legit biz, but don't want to get suckered into another Enron/WorldCom/Global Crossing etc. |