Practical analysis for investment professionals

Financial Statement Analysis


Machine Learning and FOMC Statements: What’s the Sentiment?

What do machine learning and natural language processing reveal about Federal Open Market Committee statements?

Tricks of the Private Equity Trade, Part 2: Leverage

The essence of maximizing the internal rate of return (IRR) lies in the total amount of leverage contracted to finance a transaction.

Dan Joldzic, CFA: Natural Language Processing in a Big Data World

"We are living in a Big Data World," Dan Joldzic, CFA, says. "No single analyst or team of analysts can capture all the information on their positions."

ESG Disclosure: How Can External Assurance Help Build Trust?

ESG assurance must replicate the knowledge and experience of external audit while avoiding its pitfalls.

Evergrande: Not So Grand Financial Statements?

Risks can be known in advance. You just need to be curious enough.

Counting the Cost of Capital and Seeding Network-Based Accounting

Cost of capital is a tenuous concept. Charlie Munger amusingly calls it a “perfectly amazing mental malfunction.”

James H. Freis, Jr., CFA: The Rise and Fall of Wirecard

A key lesson from the "Enron of Germany": If you see something, say something.

Refreshing Revenue, the Cash Conversion Cycle, and Free Cash Flow

GAAP sometimes misrepresents business reality. We can use that fact to generate some alpha.

Fraud and Deception Detection: Five Language Fingerprints

Dishonest companies tend to leave five textual fingerprints in their communications that differ from those of more truthful firms.

How Alpha Hides in GAAP Accounting: Return on Equity

You can find significant alpha in the mechanics that drive GAAP accounting.