Publications
Publications
- April 1982 (Revised June 1985)
- HBS Case Collection
Westinghouse Electric Corp.: Quality of Earnings Analysis
Abstract
Westinghouse had just issued its annual report to shareholders for the year ending December 31, 1973. The report indicates that sales have increased to a record $5.7 billion but that net income is down almost 20% from its record level of $199 million in the previous year. The chairman's letter to shareholders suggests that while earnings were not very good in 1973, he expects them to recover in 1974. May be used as either the 1st or 2nd case in a 2nd-year MBA course dealing with the analysis of corporate financial reports. The objective is to introduce students to the concept of "quality of earnings." Much of the focus of the case deals with the flexibility management has in making accounting decisions which determine net income.
Keywords
Citation
Bartczak, Norman. "Westinghouse Electric Corp.: Quality of Earnings Analysis." Harvard Business School Case 182-239, April 1982. (Revised June 1985.)