Pick up two sets of accounts for similar football clubs or software firms and you may find radically different looking numbers. In his fourth ‘cooking the books’ video Tim Bennett explains why this happens and what you can do about it.
• How investors can be fooled by long-term assets
• How investors can be fooled by long-term contracts
• How investors can be fooled by provisions
• How investors can be fooled by development costs
In this video, Ed Bowsher explains how to calculate a company’s profit margin, why it is the best way to evaluate profitability, and how you can use it when analysing a company.
Hedge funds perform a valuable service by weeding out overvalued shares. In this video, Ed Bowsher explains some of the things they look for when they’re hunting for shares to short.
In his latest video, Ed Bowsher looks at the current ratio, which can help you see whether a company has sufficient resources to pay its bills in the near future.