| |
| |
| Reading between the Lines | |
| |
| |
| The Adversarial Nature of Financial Reporting | |
| |
| |
| The Purpose of Financial Reporting | |
| |
| |
| The Flaws in the Reasoning | |
| |
| |
| Small Profits and Big Baths | |
| |
| |
| Maximizing Growth Expectations | |
| |
| |
| Downplaying Contingencies | |
| |
| |
| The Importance of Being Skeptical | |
| |
| |
| Conclusion | |
| |
| |
| The Basic Financial Statements | |
| |
| |
| The Balance Sheet | |
| |
| |
| The Value Problem | |
| |
| |
| Issues of Comparability | |
| |
| |
| "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 | |