Practical analysis for investment professionals

Financial Statement Analysis


Book Review: The End of Accounting and the Path Forward for Investors and Managers

Drawing from a comprehensive empirical analysis, the authors demonstrate how financial reports have largely lost their relevance and present an actionable alternative for finance professionals.

Where Markets Fail: Markets Are Not Systemic

Markets are usually not systemic. Instead, from the bird’s-eye perspective of "Capitalism," many businesses are "opportunities" in the same way that it feels good to hit yourself in the head with a hammer: It's much better once you stop.

Top 10 Posts from 2016: How to Read Financial News, Active Investing

The end of the year is a good time to look back and take stock. What Enterprising Investor articles did readers find most compelling in 2016? The results are illuminating. Our top content runs the gamut from the granular — tightly focused, practice-oriented material on starting a firm and what to read to stay informed — to more "big picture" analysis on negative interest rates and the ongoing active vs. passive debate. Taken together, they reflect the currents at work in the investment management profession at both the system-wide and individualized levels.

Does ESG Boost Returns?

There is a link between strong performance on environmental, social, and governance (ESG) factors and what investors care about by definition: generating cash from business activity.

Book Review: Capital Returns

Although a collection of company analyses may not seem like compelling reading, this volume covers an important and underappreciated topic and boasts a superb introduction by one of the great financial writers of our era, Edward Chancellor. Both real-life and fictional examples help readers deepen their understanding of the capital cycle and teach managers and analysts capital cycle pitfalls to avoid.

Non-GAAP Business Performance Measures: An Investor Perspective

Non-GAAP company performance measures are growing in prominence. Is this a good thing for investors who rely so strongly on accounting numbers for evaluating performance and valuing businesses? A recent CFA Institute webinar explored the issue.

The Benefits of Customizing Client Statements

Are customized client statements a good fit for managers and clients?

Top Five Articles from January: Charts, Commodities, and Compound Interest

Highlights from last month include Janet Zhang's analysis of the recent commodities crash; an exploration by Jason Voss, CFA, of a new method for valuing private firms; and Will Ortel's examination of the prospects for growth through the prism of 34 charts.

Is Accrual Accounting Actually Accurate?

Accrual accounting often plays a crucial role in investment decisions. But based as it is on subjective judgment and abstraction, does accrual accounting provide an accurate picture of a business?

Insights from India: Opportunities, Aging Gracefully, and Averting Crises

At the 6th India Investment Conference in Mumbai, sessions discussed the challenges and opportunities facing the investment management industry in India.



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