Statements & Forensics
Reading financial statements and spotting accounting red flags.
Financial statements are where a business tells its story, and this topic teaches you to read it and to catch when it is being spun.
It walks the three core statements, the income statement, the balance sheet, and the cash flow statement, plus the measures that matter most, from EBITDA to free cash flow.
Then it turns forensic, covering earnings quality and the accounting red flags that precede many blowups.
Investing With Purpose keeps the focus on what the numbers reveal about a company's real health, not the version management prefers.
Work through it and a filing becomes a tool for diligence rather than a wall of figures you take on trust.
Start here
The income statement is the financial report that shows how much a company sold, what that selling cost, and how much…
A balance sheet is a snapshot of what a company owns, what it owes, and what is left over for shareholders, all…
The cash flow statement tracks every dollar of cash that moved into or out of a company during a reporting period.…
Free cash flow (FCF) is the cash a company produces that is left over after funding the investments required to keep…
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a non-GAAP profitability…
Earnings quality asks a simple question: do the numbers on the income statement reflect economic reality, or have they…
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