I'd like to believe an error occurred. That would be plan "A".
No change on the formula, we're told.
FedEx Freight | FedEx Corp. Reports Second Quarter Results (Bonus Numbers)
- Thread starter SwampRatt
- Start date
I'd like to believe an error occurred. That would be plan "A".
No change on the formula, we're told.
We are being told (via pre-shift) of the official word on the bonus payout. Yeah, 2.16 based on an a O/M of 8.3%. 
In a effort to figure out how a publicly reported 8.4% operating margin becomes a 8.3% for the bonus calculation, I looked into the different rounding methods available.
It is tough to imagine how the non-rounded (actual) O/M of 8.35697704410627% became 8.3% for us, BUT there might be an answer. Not one we'll like, but perhaps an answer.
A relatively obscure (to most) rounding method, Banker's Rounding (also known as "Gaussian Rounding"), is used in some financial calculations.
"Bankers Rounding is an algorithm for rounding quantities to integers, in which numbers which are equidistant from the two nearest integers are rounded to the nearest even integer. Thus, 0.5 rounds down to 0; 1.5 rounds up to 2. A similar algorithm can be constructed for rounding to other sets besides the integers (in particular, sets which a constant interval between adjacent members).
Other decimal fractions round as you would expect--0.4 to 0, 0.6 to 1, 1.4 to 1, 1.6 to 2, etc. Only x.5 numbers get the "special" treatment.
So called because banks supposedly use it for certain computations.
The supposed advantage to bankers rounding is that it is unbiased, and thus produces better results with various operations that involve rounding."
http://wiki.c2.com/?BankersRounding
http://www.xbeat.net/vbspeed/i_BankersRounding.htm
It may apply in this case... Like it or NOT.
In a effort to figure out how a publicly reported 8.4% operating margin becomes a 8.3% for the bonus calculation, I looked into the different rounding methods available.
It is tough to imagine how the non-rounded (actual) O/M of 8.35697704410627% became 8.3% for us, BUT there might be an answer. Not one we'll like, but perhaps an answer.
A relatively obscure (to most) rounding method, Banker's Rounding (also known as "Gaussian Rounding"), is used in some financial calculations.
"Bankers Rounding is an algorithm for rounding quantities to integers, in which numbers which are equidistant from the two nearest integers are rounded to the nearest even integer. Thus, 0.5 rounds down to 0; 1.5 rounds up to 2. A similar algorithm can be constructed for rounding to other sets besides the integers (in particular, sets which a constant interval between adjacent members).
Other decimal fractions round as you would expect--0.4 to 0, 0.6 to 1, 1.4 to 1, 1.6 to 2, etc. Only x.5 numbers get the "special" treatment.
So called because banks supposedly use it for certain computations.
The supposed advantage to bankers rounding is that it is unbiased, and thus produces better results with various operations that involve rounding."
http://wiki.c2.com/?BankersRounding
http://www.xbeat.net/vbspeed/i_BankersRounding.htm
It may apply in this case... Like it or NOT.
