Please ensure Javascript is enabled for purposes of website accessibility

Big 4 Performance Analysis Will Probably Come as a Huge Shock to CNN

You may remember a little rant we (and others) went on not so long ago about CNN buying what the Big 4 were selling re: growing business in shrinking economy.
Well! The gang over The Big Four Blog have put out a performance analysis (PDF can for download: big4_media_kit.pdf) for the firms’ 2009 revenue and their conclusions tell a different story.
From the Execkquote>2009 was a difficult year overall for the Big Four accounting firms: Deloitte, Ernst & Young (E&Y), KPMG and PricewaterhouseCoopers (PwC), as their financial performance was affected by tough external conditions, slow global economic growth, cost-conscious clients and sluggish merger and acquisition activity.


After an extraordinary period of continuous revenue growth from the early 2000s to 2008, combined revenue for the four firms in fiscal 2009 did fall by 7% from fiscal 2008 in US dollar terms. Revenue decreases in US dollar percentage terms ranged from negative 5% for Deloitte to negative 7% each for Ernst & Young and PricewaterhouseCoopers to negative 11% for KPMG.

One of the more interesting tidbits was presented in the chart below:
Picture 1.png
After a growth in employment of over 10% in 2008, the rate dropped to 2% for 2009 and judging by the firms’ expectation to offer less internships this year we’d expect that trend to continue.
It’s worth noting that even in the rebuilding year, the firms’ combined revenue was $94 billion so no one is starving but, as BFB pointed out, the firms near decade long run of growth has now come to a screeching halt.
With all the new information, CNN might consider a follow-up story. We’d be happy to take a look at it. Or they may just leave it there:

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
CNN Leaves It There
www.thedailyshow.com
Daily Show
Full Episodes
Political Humor Health Care Crisis

You may remember a little rant we (and others) went on not so long ago about CNN buying what the Big 4 were selling re: growing business in shrinking economy.
Well! The gang over The Big Four Blog have put out a performance analysis (PDF can for download: big4_media_kit.pdf) for the firms’ 2009 revenue and their conclusions tell a different story.
From the Executive Summary:

2009 was a difficult year overall for the Big Four accounting firms: Deloitte, Ernst & Young (E&Y), KPMG and PricewaterhouseCoopers (PwC), as their financial performance was affected by tough external conditions, slow global economic growth, cost-conscious clients and sluggish merger and acquisition activity.


After an extraordinary period of continuous revenue growth from the early 2000s to 2008, combined revenue for the four firms in fiscal 2009 did fall by 7% from fiscal 2008 in US dollar terms. Revenue decreases in US dollar percentage terms ranged from negative 5% for Deloitte to negative 7% each for Ernst & Young and PricewaterhouseCoopers to negative 11% for KPMG.

One of the more interesting tidbits was presented in the chart below:
Picture 1.png
After a growth in employment of over 10% in 2008, the rate dropped to 2% for 2009 and judging by the firms’ expectation to offer less internships this year we’d expect that trend to continue.
It’s worth noting that even in the rebuilding year, the firms’ combined revenue was $94 billion so no one is starving but, as BFB pointed out, the firms near decade long run of growth has now come to a screeching halt.
With all the new information, CNN might consider a follow-up story. We’d be happy to take a look at it. Or they may just leave it there:

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
CNN Leaves It There
www.thedailyshow.com
Daily Show
Full Episodes
Political Humor Health Care Crisis

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

3d rendering. Smiling chatbot and mockup empty bubbles, text messages with answers. Artificial intelligence helping human to generate ideas and create. Concept of AI and communication illustration

EY’s New Payroll Chatbot Just Has to Be Slightly Less Sucky Than HR to Be a Success

No doubt proud of its partnership with a massive professional services organization that is mostly prestigious unless some scandal or embarrassing internal falling out is afoot, Microsoft has written a long and complementary blog post about EY’s new toy the ‘EY Intelligent Payroll Chatbot‘. Speaking of EY and payroll, the great “just kidding!” payroll snafu […]

old man giving thumbs down

Former Partner Who Got His Says Aussie Government Should Stop Using Outside Consultants

*not the actual partner in photo The PwC tax scandal (AFR coverage) has brought to light the government’s liberal use of outside consultants (that’s “liberal” as in “a lot” not the political leaning so spare the comments) and amplified the voices of people who believe the government should be doing a lot of this work […]