Truth or bulls***t in financial accounting
ANALYSIS: What investors can look at to understand risks of a picture of profitability painted by a company’s accounts.
The picture of profitability painted by a company’s accounts may not be the best interpretation of how it is performing.
A company’s financial statements paint a picture of the profits the company is generating. However, in many cases, this picture is not the only plausible interpretation of the company’s profitability. In this article we discuss some of the indicators that investors can look at to understand the
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