Quick Ways To Spot Company Frauds Or Manipulations | Value Investing News

Quick Ways To Spot Company Frauds Or Manipulations

  • If you look at the trade receivables to revenue, and the inventory to revenue, if those numbers are high growing, or high relative to peers, it’s usually an indicator of trouble.
  • What you usually see is they’ll fabricate, or they’ll send an invoice out early and then the debtor days will go up.
  • Stephen Clapham:
    The amazing thing about that was HSBC has lent this guy £10 million and the loan wasn’t in the balance sheet.
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