The chameleon and the gullible turtles
The chameleon and the gullible turtles
A tale of vibrant forecasts and hidden costs.
Once upon a time, in the sprawling realm of Marketopolis, a creature named EBITDA, a peculiar chameleon, resided. It was known for its uncanny ability to change its skin, showing profits in the most vibrant colours while conveniently hiding less appealing hues of interest, taxes, depreciation, and amortization.
One day, a young hare with high entrepreneurial spirits and a new venture spotted EBITDA. Captivated by its brilliant colours, he invited the chameleon to his venture hoping to dazzle the slow-moving, deep-pocketed turtles who were the venture capitalists of Marketopolis. EBITDA obliged, its vibrant hues showcasing the hare’s venture in glowing terms of profitability.
Intrigued by the glimmering spectacle, the usually cautious turtles invested their prized clams into the hare’s business, all while neglecting the less colourful aspects hidden by EBITDA. They were drawn into the spectacle, as if hypnotized by a squirrel performing a flamenco dance.
Observing the scenario, a wise old tortoise known for his sharp wit and no-nonsense approach, sighed. With a chuckle, he murmured, “Relying on EBITDA to portray your profits is like expecting a chameleon not to change colours when it's sitting on a rainbow. Disregarding costs doesn’t erase them, any more than disregarding my bald spot makes my shell shinier.”
When the winds of the economic winter blew, the hare and the dazzled turtles found themselves shivering in the cold. The clams were gone, and EBITDA, not missing a beat, changed its colours and moved on to the next venture.
In the end, the creatures of Marketopolis learned a valuable, albeit costly, lesson: Don’t be entranced by the vibrant hues of a financial chameleon like EBITDA. It’s not always the part you see, but the one you don’t, that counts.