Learn / Accounting for analysts Go to Overview 1. Revenue recognition and where growth hides 2. Working capital and cash conversion, Pro 3. Non-GAAP adjustments and stock compensation, Pro 4. Capitalize or expense, Pro 5. Acquisitions and organic growth, Pro 6. Share count, buybacks, and dilution, Pro 7. Red flags: a quality of earnings checklist, Pro Flashcards, 0 of 17 reviewed Basic quiz Advanced quiz Terms Accounting for analysts
0 of 7 lessons
0 of 17 cards The accounting a research analyst uses every week: where revenue growth comes from, whether earnings turn into cash, which adjustments to trust, and the signs that a quarter was dressed up.
A Advanced4 lessons 4 Capitalize or expense Accounting choices about timing move EBITDA, EBIT, and EPS without changing cash. Free cash flow sees through them, which is why analysts lean on it. 9 min 5 Acquisitions and organic growth Reported growth mixes what the business did with what it bought and what currencies did. Organic growth strips both out, and purchase accounting explains the new lines on the balance sheet. 9 min 6 Share count, buybacks, and dilution EPS has a denominator, and analysts who model it lazily get the per share numbers wrong. Options, convertibles, and buybacks all move it. 10 min 7 Red flags: a quality of earnings checklist A beat can come from the business or from the accounting. This lesson gives a checklist and runs it on one quarter where most of the beat came from the second kind. 11 min Q Advanced quiz 10 questions, 80% passes