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Course · Act V: Good Investment, Bad Investment · Act V case study

Spotting accounting red flags: a final case

Case study: a hyped company’s pitch checked against its numbers, reading profit, cash, the balance sheet, returns and price in ten minutes.

Key terms

The ten-minute read
Profit → cash → balance sheet → returns → price. If the story and the numbers disagree, believe the numbers.
Restatement
A company correcting previously published financial statements. Often follows aggressive accounting.

“The Hype Inc. Pitch” is part of the full course: 6 puzzles on spotting accounting red flags: a final case, with a story that carries through all five acts. Try this act’s free chapter, “Time Value of Money”, first.

Play the free chapter →See the course