#3 ways Companies distort financials.

Are you waiting for the day when you will finally realize that the senior management at the Publicly traded company is no doubt, purposely reporting positive news and impressive financial results that will drive the share price higher and higher every quarter?

While most companies act ethically and follow prescribed accounting rules when reporting financial performance, some take advantage of the rule to portray their financial results in a misleading positive way.

As an investor, you should be skeptical 🤔 about:

1-Earnings Manipulation

2- Cashflow Manipulation

3-Key metrics (Key Performance Indicators KPIs) - how companies fool investors by showcasing misleading metrics that are not key measures of business performance or economic health.

The next posts will be on how to identify earning Manipulation.

Stay tuned.

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