$Brookfield Business Partners LP (BBU.US)$The main business ...

In 2021, the net income soared to 2.15 billion. On the surface, the growth is rapid, but looking at the financial statements, it is found that before 2021, depreciation and amortization increased year by year, reaching 2.17 billion in 2020, while this item did not appear in 2021.

The interest expense burden is extremely high, reaching 60% of operating profit in 2021. Considering no depreciation was done in 2021, the actual proportion is even higher.

It started to show its true colors in the first two quarters of 2022. Despite a revenue growth of 33.4%, operating profit only increased by 18%. Net income dropped by 82%. Also, no depreciation and amortization were done in the first two quarters, so it should be revealed in the annual report.

Currently, the PE ratio is 6.6, and the TTM PE ratio has increased to 18.6. It should be a stock to avoid.