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Clear filtersWorking Capital and the Cash Conversion Cycle
The gap between paying for inputs and collecting for outputs has to be funded by somebody. Which side funds it says a lot about a company's position with its customers and suppliers.
Segment Reporting
Consolidated results average together businesses that may be moving in opposite directions. The segment note is where that averaging is undone.
Quality of Earnings
Two companies can report the same profit and one of the numbers is more likely to persist. Quality is about persistence and about how much of the profit is cash.
Revenue Recognition
When a sale becomes revenue is a judgement governed by a five-step framework. The judgement is where a substantial share of accounting problems have originated.
Pension Obligations
A defined benefit plan is a long-dated liability whose measured size depends on a discount rate. Small changes in assumptions move it substantially.
Accounting Red Flags
A checklist assembled from what has actually preceded accounting failures. None of the items is proof of anything, and several together are a pattern.