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Archived Copies of Warranty Week
December 2002 to Today
Warranty Expenses vs. Product Sales & Net Income:
We're adding a new metric into the mix: net income. When manufacturers boost warranty accruals, net income suffers. And when warranty expenses drop, net income rises. But is there really a correlation between net income and warranty accruals? Or perhaps warranty reserves and net income?
April 8, 2021
Extended Warranty Income:
If comparing extended warranty to net income is misleading, then let's correct the record by comparing apples to apples: warranty claims paid to recognized revenue over the past two years.
November 9, 2004
Extended Warranty Profits:
For many manufacturers, the sale of extended warranties contributes heavily to net income. But only a handful of companies have made the financial disclosures needed to figure out how important it really is to them.
October 26, 2004
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