Originally Posted by
ginntonic
SLBs do affect profits, albeit indirectly.
The way F9 treats their SLB's as gains within other OE effectively reduces overall OE. Less OE = higher operating income which flows to net.
Still, I don't discount the overall point of your post.
But you are discounting the overall point, the SLB's have absolutely nothing to do with the OE. Zero. Nada. Nunca. Zilch. The SLB's do not equal higher operating income which flows to net because the SLB's are added AFTER NET. Read slower...SLB's are not revenue. SLB's are not revenue. SLB's are not baked into NET. If F9 has a zero net income quarter and they have an SLB that additional cash is added to the cash on hand, NOT net income. The net would still be zero. HF people this isn't differential equations this is 1+1=2.