In his second video in his ‘cooking the books’ series, Tim Bennett takes a look at how companies can manipulate what accountants call ‘provisions’ to create the profit profile they want investors to see. He also explains how you can avoid being fooled.
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.