Your article about Salesforce (“Activists call Salesforce to account with campaign for focus on profits”, Report, January 26) contains clues to a core underlying problem for investors — prolific stock issuance, both for employee compensation and expensive acquisitions. The statement that “Salesforce’s operating margins have remained around 20 per cent for years” does not tell the complete story. Operating margins, using the so-called generally accepted accounting principles or US GAAP, have been closer to zero. Read More...
Your article about Salesforce (“Activists call Salesforce to account with campaign for focus on profits”, Report, January 26) contains clues to a core underlying problem for investors — prolific stock issuance, both for employee compensation and expensive acquisitions. The statement that “Salesforce’s operating margins have remained around 20 per cent for years” does not tell the complete story. Operating margins, using the so-called generally accepted accounting principles or US GAAP, have been closer to zero.
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