medium · Corporate Credit Analysis
A company consistent reports 'Restructuring Charges' as non-recurring add-backs to its 'Adjusted EBITDA' every year for five years.
What is the most appropriate analytical response?
- Accept the add-backs but increase the capex forecast
- Notch the management and governance score down but leave EBITDA as reported
- Treat the charges as recurring operating expenses and remove the add-back
- Increase the debt total by the cumulative amount of the five-year charges
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