How investors can be fooled by development costs

Biotech and pharmaceutical investors, among others, need to watch out for the way firms treat the cost of developing new products, as this can have a big impact on a firm’s results. In his fifth video in the ‘cooking the books’ series, Tim Bennett explains how.

More from this series

• How investors can be fooled by brands
• How investors can be fooled by long-term assets
• How investors can be fooled by long-term contracts
• How you can be fooled by provisions


Video tutorial - why profit margins matter

Why profit margins are really useful

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.

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