> companies play with CAPEX, OPEX, what they call innovation, what they amortize etc.

True but most public companies reporting under GAAP tend to play roughly similar games to roughly similar degrees. So these metrics alone may not reflect much objective reality about a particular company at a given moment but can be useful in benchmarking the relative performance of similar types of companies against each other.

Exactly. That drives alot of the faddish nature of business. After Microsoft and Adobe started printing money with SaaS, suddenly everyone decided that selling software, one of the most lucrative businesses to ever be devised was a loser. Everyone wants $50/user/month now.

I realized it at a big enterprise. I couldn't figure out why one of my suppliers was flying out senior execs if I looked at the salesguy funny. We had a $2M account, and it turns out in the transition to SaaS, they value it like a financial product like insurance or a bond. So my stupid $2M spend may impact the market cap of the company 100x... which gets the Chief Revenue/Sales Dude a fat bonus.

Exactly - this is a case where consistency is more important than accuracy

If everyone is optimizing their GAAP figures, eventually everyone converges on a similar number you can compare across companies

Downside is that if you don’t play the game you’re sort of screwing yourself