| |
| |
Reading between the Lines | |
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| |
The Adversarial Nature of Financial Reporting | |
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| |
The Purpose of Financial Reporting | |
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| |
The Flaws in the Reasoning | |
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| |
Small Profits and Big Baths | |
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| |
Maximizing Growth Expectations | |
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| |
Downplaying Contingencies | |
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| |
The Importance of Being Skeptical | |
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| |
Conclusion | |
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| |
The Basic Financial Statements | |
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| |
The Balance Sheet | |
| |
| |
The Value Problem | |
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| |
Issues of Comparability | |
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| |
"Instantaneous" Wipeout of Value | |
| |
| |
How Good Is Goodwill? | |
| |
| |
Losing Value the Old-Fashioned Way | |
| |
| |
True Equity Is Elusive | |
| |
| |
Pros and Cons of a Market-Based Equity Figure | |
| |
| |
Undisclosed Hazards | |
| |
| |
The Common Form Balance Sheet | |
| |
| |
Conclusion | |
| |
| |
The Income Statement | |
| |
| |
Making the Numbers Talk | |
| |
| |
How Real Are the Numbers? | |
| |
| |
Conclusion | |
| |
| |
The Statement of Cash Flows | |
| |
| |
The Cash Flow Statement and the LBO | |
| |
| |
Analytical Applications | |
| |
| |
Cash Flow and the Company Life Cycle | |
| |
| |
The Concept of Financial Flexibility | |
| |
| |
In Defense of Slack | |
| |
| |
Conclusions | |
| |
| |
A Closer Look at Profits | |
| |
| |
What is Profit? | |
| |
| |
Bona Fide Profits versus Accounting Profits | |
| |
| |
What Is Revenue? | |
| |
| |
Which Costs Count? | |
| |
| |
How Far Can the Concept Be Stretched? | |
| |
| |
Conclusion | |
| |
| |
Revenue Recognition | |
| |
| |
Informix's Troubles Begin | |
| |
| |
Calling the Signals | |
| |
| |
Astray on Layaway | |
| |
| |
Recognizing Membership Fees | |
| |
| |
A Potpourri of Liberal Revenue Recognition Techniques | |
| |
| |
Conclusion | |
| |
| |
Expense Recognition | |
| |
| |
AOL's Search for Wiggle Room | |
| |
| |
IBM's Innovative Expense Reduction | |
| |
| |
Simple Analysis Foils Elaborate Deception | |
| |
| |
Oxford's Plans Go Astray | |
| |
| |
Conclusion | |
| |
| |
The Applications and Limitations of EBITDA | |
| |
| |
EBIT, EBITDA, and Total Enterprise Value | |
| |
| |
The Role of EBITDA in Credit Analysis | |
| |
| |
Abusing EBITDA | |
| |
| |
A More Comprehensive Cash Flow Measure | |
| |
| |
Working Capital Adds Punch to Cash Flow Analysis | |
| |
| |
Conclusion | |
| |
| |
The Reliability of Disclosures and Audits | |
| |
| |
An Artful Deal | |
| |
| |
Death Duties | |
| |
| |
Chainsaw Al | |
| |
| |
Stumbling Down the Audit Trail | |
| |
| |
Conclusion | |
| |
| |
Mergers-and-Acquisitions Accounting | |
| |
| |
The Twilight of Pooling-of-Interests Accounting | |
| |
| |
Maximizing Postacquisition Reported Earnings | |
| |
| |
Managing Acquisition Dates and Avoiding Restatements | |
| |
| |
Conclusion | |
| |
| |
Profits in Pensions | |
| |
| |
An Admonition from the SEC | |
| |
| |
Conclusion | |
| |
| |
Forecasts and Security Analysis | |
| |
| |
Forecasting Financial Statements | |
| |
| |
A Typical One-Year Projection | |
| |
| |
Sensitivity Analysis with Projected Financial Statements | |
| |
| |
How Accurate Are Projections in Practice? | |
| |
| |
Projecting Financial Flexibility | |
| |
| |
Pro Forma Financial Statements | |
| |
| |
Multiyear Projections | |
| |
| |
Conclusion | |
| |
| |
Credit Analysis | |
| |
| |
Balance Sheet Ratios | |
| |
| |
Income Statement Ratios | |
| |
| |
Statement of Cash Flows Ratios | |
| |
| |
Combination Ratios | |
| |
| |
Relating Ratios to Credit Risk | |
| |
| |
Conclusion | |
| |
| |
Equity Analysis | |
| |
| |
The Dividend Discount Model | |
| |
| |
The Price-Earnings Ratio | |
| |
| |
Why P/E Multiples Vary | |
| |
| |
The Du Pont Formula | |
| |
| |
Valuation through Restructuring Potential | |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
Glossary | |
| |
| |
Notes | |
| |
| |
Index | |