By Byron MacLeod, CFA
Associate Director of Research, Gradient Analytics, LLC
“Whatever you are, be a good one.” – Abraham Lincoln
We at Gradient Analytics are accounting experts. We evaluate companies for earnings sustainability, financial engineering, and accounting mismanagement. Unfortunately, many investors and portfolio managers may be unaware of the variety of levers enabling managers to aggressively recognize revenue, temporarily boost earnings, overstate assets, hide liabilities, or grow through acquisitions. Unaware investors can suddenly find that their supposedly “safe” investments have turned sour on them.
By monitoring the true quality of earnings, it becomes easier to judge a company’s true financial health.
The “Trump Bump” & Rising Correlations
Though the market appears to be recently dominated by Trump’s potential impact on the American economy, earnings quality trends continue to be relevant to stock prices. Read more Read more about The Trump Bump: An Earnings Quality Analysis