Accounting Red Flag 3: Cash Flow Beats Earnings
We explain why it's essential to check that reported earnings are being converted into cash. It sounds obvious, but we show a couple of tricks which make it easier.
Every fraud we have looked at (sadly, it's a long list) has tried to inflate its earnings. By far the majority fail to convert these into cash. A few manage to fake even the cash!
You can see this video with additional explanation in our free training area. (You will need to sign up to get access). https://club.behindthebalancesheet.co...
IMPROVE YOUR INVESTING SKILLS
Interested in improving your investing skills – check out our paid courses, delivered by Steve Clapham:
Why you should consider a course to learn about investing: https://courses.behindthebalancesheet...
Our list of courses: https://courses.behindthebalancesheet...
Our most popular course is the Analyst Academy which will take you from a novice to become a proficient investor: https://courses.behindthebalancesheet...
GET THE BOOK
Or check out Steve’s book: https://www.behindthebalancesheet.com...
Buy it on Amazon (affiliate links)
Amazon.com: https://amzn.to/32yaQ7E
Amazon.co.uk: https://amzn.to/35DLuaH
OUR FREE CONTENT
The Behind the Balance Sheet club has many interesting articles https://club.behindthebalancesheet.co...
Check out our blog, where we write in-depth analyses of companies, accounting and investing.
https://www.behindthebalancesheet.com...
DON’T FORGET TO SIGN UP FOR OUR NEWSLETTER (INCLUDED WITH CLUB ACCESS)
https://club.behindthebalancesheet.co...