Investors can’t rely on the income statement and balance sheet alone to tell the whole story of a company’s profitability. Too often, these financial statements can be distorted by accounting rule changes, non-operating items, and other red flags buried in the footnotes. Investors need to analyze the footnotes and management discussion and analysis (MD&A) in order to truly understand the economics of a company.Not a Member Yet? You need a Gold Membership or higher to view the content on this page.
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